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Definitions
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| Starting amount |
The starting balance or current amount you have invested or saved. |
| Additional contributions |
The amount that you plan on adding to your savings or investment each period. The investment period options include monthly, quarterly and annually. |
| Years |
The total number of years you are planning to save or invest. |
| Rate of return |
The annual rate of return for this investment or savings account.
Historically the major stock indexes have averaged 11% to 12% per year. If
you plan on withdrawing your money within five years, you may wish to
choose a more conservative rate of return.
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| Compound interest |
This is the frequency that your investment's interest or income is
added to your account. The more frequently this occurs, the sooner your
accumulated interest income will generate additional interest. For stock
and mutual fund investments you should choose 'Annual'. For savings
accounts and CDs all of the options are valid, although you will need to
check with your financial institution to find out how often interest is
being compounded on your particular investment.
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Information and interactive calculators are made available to you as self-help tools for your
independent use. We can not and do not guarantee their accuracy or their
applicability to your circumstances. We encourage you to seek personalized
advice from qualified professionals regarding all personal finance
issues.
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