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Savings Calculator Assumptions & Methodology

What This Calculator Shows

This calculator provides a hypothetical illustration of how savings might grow over time. It is not a prediction, projection, or guarantee of future results. Actual investment outcomes will vary and may be significantly higher or lower than the amounts shown.

Return Assumption

The calculator assumes an 8% annual rate of return, based on historical performance of U.S. equity markets. According to data compiled by Professor Aswath Damodaran of NYU Stern School of Business, the S&P 500 has returned approximately 10% annually on average since 1928, and approximately 8% annually since 1957 when the index expanded to 500 stocks.

Our 8% assumption reflects a conservative estimate for long-term equity investing and is applied to UNest's Aggressive (equity-focused) portfolio model.

Source: Damodaran, Aswath. "Historical Returns on Stocks, Bonds and Bills: 1928-2024." NYU Stern School of Business, January 2025. https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html

Your Portfolio Selection Matters

The return assumption above applies to UNest's aggressive portfolio model. If you select a moderate or conservative portfolio, which includes fixed income investments, your expected long-term returns would typically be lower. Your actual results will depend on the portfolio you choose.

What This Calculator Does Not Include

• Fees: Results shown are gross of advisory fees and fund expenses, which will reduce actual returns.
• Taxes: Does not account for capital gains taxes or taxes on dividends.
• Inflation: Returns are shown in nominal terms. Purchasing power of future dollars will be lower than today.

Important Limitations

• Past performance does not guarantee future results. Markets are volatile and returns vary significantly from year to year.
• This is not personalized investment advice. Your actual results will depend on your specific portfolio allocation, contribution timing, and market conditions.
• Year-to-year returns will fluctuate. The calculator assumes a constant annual return for simplicity, but actual markets experience gains and losses that vary widely.

Questions?

Contact us at support@unest.co or review our Form ADV Part 2A for more information about our advisory services, fees, and investment strategies.

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