How we make projections and our disclaimer.
All amounts are shown as real dollars, or dollars that are adjusted for inflation. So you’ll be able to buy about the same with a projected dollar as you can buy with a dollar today.
The projections were made using “Monte Carlo” simulations. We took past returns from stocks, bonds, and a 50/50 mixed fund and created a probability distribution. We randomly selected returns from this distribution thousands of times, and picked the median return for average returns, and the 5th and 95th percentile returns for bad and good returns.
Stock returns are based on total U.S. stock returns since 1942. Bond returns are based on an intermediate bond fund during the same period.
DISCLAIMER: The information provided on the Icon website is for educational purposes only. It is NOT intended to provide personal financial advice.