The Forecast page displays the results of the simulated wealth forecast for both the current and target allocations. Results are displayed in both table and graph format.
Click the View drop-down and select Future or Current.
To edit the graph, click Settings and then select Forecast or Withdrawal Sequence.
Click Wealth Details. The Wealth Details window opens.
Click the Portfolio Value drop-down and select 10th Percent, Median, or 90th Percent.
Click the Current Value or Future Value radio button.
Click the Current Allocation or Target Allocation radio button.
Check the Show MRDs check box to display minimum required distribution, the percentage of a retirement account that an individual in the U.S. is required to withdraw each year after reaching age 70.5.
Percentiles Table
A percentiles table displays the forecasted wealth values at the 10th, 50th, and 90th percentile levels for up to five different time periods. A percentile value represents the probability that the portfolio value (or return) will fall below that value. For example, if the 10th percentile wealth value is $500,000, there is only a 10% chance that the portfolio will have a value below $500,000. This corresponds to a 90% confidence level.
The actual time periods displayed is dependent on the length of the plan horizon. The last column will always display the exact number of years from the plan start year to plan end year.
Values for beginning, ending, additions and withdrawals reflect simulated inflation rates. The ending value from the previous year is used to determine the beginning value for each year; however, values will not match, since different simulations are used for each. Beginning value is determined starting with withdrawals, returns from simulations and account contributions at the end of each year when returns are calculated.
Wealth Forecast Graph
The Wealth Forecast graph displayed on this page shows the forecasted value of the target allocation portfolio at specific percentile levels: 10th, 50th, and 90th. This information is displayed as an area graph. The median (50th percentile) wealth of the target allocation and the median wealth of the current allocation are also displayed as lines for comparison purposes.