College Savings Assessment
This analysis is provided courtesy of Heather Christmann
Regal Financial Group
2687 44th Street SE
Kentwood, MI 49512
Your Basic Data
Years until matriculation:
Current college savings :
Expected annual contribution:
Expected rate on contribution increase:
Your College Savings Portfolio Details
Broad Asset Allocation
Detailed Stock Allocation
Expected rate of return on bonds:
Expected rate of return on cash
Total expected investment expenses:
COLLEGE SAVINGS ACCUMULATION STRATEGY
College Savings Application Results Summary
How to Use Nest Egg Guru's College Savings Application
Nest Egg Guru believes providing a range of results is more realistic and instructive for college savings planning than generating a single projected value derived from an expected annual rate of return estimate. In the real world, investment returns are not constant from one year to the next, so families should account for the possibility of negative return years in their planning, especially as the matriculation date approaches. The 5,000 simulations that are generated in this analysis represent a broad range of potential outcomes.
Users of this app are encouraged to evaluate college savings preparedness by considering the results that lie between the 50% (median) and 1% result values. This range is intended to provide a reasonable estimate of where the user’s portfolio value may fall in the event that future returns turn out to be less robust than the historical norm. This is consistent with Nest Egg Guru’s belief that people should approach college and retirement planning from the perspective of “hope for the best, but prepare for the worst”. While future investment returns are inherently undpredictable, users are encouraged to explore how changing the various inputs that are within their control may impact their results.
Nest Egg Guru’s College Savings App may be particularly useful for families who utilize 529 college savings plans, but may be applied other education funding portfolios as well. Users should be aware that the greater their real world portfolio differs from the allocation models illustrated in this application, the less useful/applicable the results may be.
Based upon an initial contribution rate of per year and an expected contribution increase rate of % per year, your total contributions to your college saving portfolio are projected to be:
This is the total projected amount you will contribute to the portfolio from now until matriculation.
In the top 20% of the simulation results (80th percentile), the value of your college savings nest egg over the years period grew to:
In the median (50th percentile) result, the value of your college savings nest egg over the years period grew to:
In the worst of the 5,000 simulations, the value of your college savings nest egg over the years period was only:
Complete Simulation Results - Projected Nest Egg Values at matriculation
Because Nest Egg Guru understands that people absorb and interpret information in varying ways, the complete simulation results are presented in two different graphical formats and in table form. The dollar amounts represent the nest egg values at each of the illustrated simulation percentiles.
|Simulation Percentile||Nest Egg Value|