Glossary of Financial Terms

Monthly payment for your auto financing.

This is the total cost of your auto purchase. Include the cost of the vehicle, any additional options and any destination charges. Don't include sales tax in this amount. Sales tax will be calculated for you and included in your total after tax price.

Number of months for this loan.

Annual interest rate for this loan.

Total amount of cash used in this purchase. The larger your cash down payment the smaller the loan you will need to finance this purchase.

The total amount that you are given for any automobile that you trade-in as part of this purchase. In some states a trade-in can also reduce the amount of sales tax you will owe. See the definition for "Sales tax deduction for trade-in" for more information on trade-in vehicles and sales tax.

Total loan balance still outstanding on the trade-in.

Any additional fee that is not subject to sales tax. This usually includes document fees or any other fees that may be due at delivery and are not taxable.

Any additional fee that is subject to sales tax. This usually includes title transfer fees or any other fees that may be due at delivery and are taxable.

Sales tax percentage rate charged on this purchase.

If you live in a state where your sales tax is calculated on your full purchase price, check this box. If this box is unchecked, sales tax is calculated on the purchase price less trade in. Currently California, the District of Columbia, Hawaii, Maryland, and Michigan allow no deductions for trade-ins when calculating sales tax. In addition, Alaska, Delaware, Montana, New Hampshire, and Oregon have no sales tax on autos.

Your total gross income from your paycheck.

Any other income that you receive including bonuses, alimony, child support or income from a business.

Total amount withheld for federal taxes. Enter this amount from your pay stub.

Total amount withheld for state taxes. Enter this amount from your pay stub.

Total amount withheld for local taxes. Enter this amount from your pay stub.

Total amount withheld for any other taxes or miscellaneous item. Enter this amount from your pay stub.

Total withheld for FICA (Federal Insurance Contributions Act) is based on the gross income on your paycheck.

Total withheld for Medicare based on the gross income on your paycheck.

Total amount withheld for insurance and benefits by your employer. Enter this amount from you pay stub.

Total amount withheld from your paycheck that is deposited into a company retirement savings plan such as a 401(k) or 403(b).

Monthly payment for this loan.

Annual interest rate for this loan. Interest is calculated monthly on the current outstanding balance of your loan at 1/12 of the annual rate.

Number of months for this loan.

Total amount of your loan.

Number of months for the auto loan.

The amount, before taxes and fees that you are paying for this auto.

Annual percentage rate for the auto loan.

This is the money you have available to be used for fees and your down payment.

Total dollar amount given to you for your auto trade-in.

Total loan balance still outstanding on the trade-in.

Fee charged for title transfer. Also include any other fees that may be due at delivery.

Sales tax percentage rate charged on this purchase.

Annual percentage rate for the home equity loan.

Any additional costs to the home equity loan. This should include any appraiser fees, points paid or other miscellaneous fees.

Your state and federal marginal income tax rates. These rates are used to determine the tax savings associated with a home equity loan.

If you live in a state where your sales tax is calculated on your full purchase price, check this box. If this box is unchecked, sales tax is calculated on the purchase price less trade in. Currently California, the District of Columbia, Hawaii, Maryland, Michigan allow no deductions for trade-ins when calculating sales tax. In addition, Alaska, Delaware, Montana, New Hampshire, and Oregon have no sales tax on autos.

Total amount of life insurance coverage you currently have for yourself.

Number of years your spouse will need to use your insurance proceeds to provide for living expenses and income.

What you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has a long-term average of 3.1% annually, from 1925 through 2007. The CPI for 2007 was 2.4%, as reported by the Minneapolis Federal Reserve. Your total expenses are increased by this rate for each year you require income. The income you would receive from your life insurance policy is used to cover any shortfalls between your expected income from all sources and your expenses.

The annual rate of return for your investments. The actual rate of return is largely dependant on the type of investments you select. The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2007, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year (source: www.standardandpoors.com). During this period, the highest 12-month return was 61%, and the lowest was -39%. Savings accounts at a bank may pay as little as 1% or less.

It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.

Insurance products may additionally include mortality, expense risk charges, cost of insurance, administrative, and surrender charges that will have a significant impact on the total rate of return for the investment.

This is your income tax rate. Changing this rate only affects your interest income from your investments. All other income and expenses should be entered on an after tax basis.

Total you have in cash, checking accounts, savings accounts or other accounts that can be used to help cover expenses.

Total amount of equity in your home that you are willing to use toward your living expenses. Only include the home equity that you consider available to use toward your living expenses. For example, the equity you would make available by selling your home and moving into a smaller one.

Total value of all investments that you are willing to use toward your living expenses.

Any other assets that you may be willing to sell or liquidate.

Taxes that are required to be paid on your assets at death.

Probate costs cover a state's legal fees for disbursing the assets of the deceased. You may incur significant probate costs, depending on your state of residence, even if you have a will.

All costs required to cover the cost of the funeral.

Any medical costs that are not covered by your medical insurance. Make sure to include any deductibles.

Credit card debt, auto loans, home equity loans, mortgages or other debt that you wish to repay. Providing the ability to repay these loans if you were to die can significantly help your family meet its monthly living expenses.

Any other items that you need to pay with your insurance proceeds.

Amounts you wish to provide your surviving children to cover future college expenses.

Income expected from your spouse after your death. If your spouse needs education or retraining, make sure that the starting year for this income provides adequate time to complete.

Depending on your work history, your family may qualify for Social Security benefits. Typically Social Security benefits for the Widow/Widower cease when the youngest child turns 16. The child's benefit generally continues to age 18. Once the children are gone, Social Security benefits are generally not available until the Widow/Widower turns age 60.

Total monthly expenses while your children are living at home. This should include all monthly expenses except child care.

Total monthly expenses after your children have left home. This should include all monthly expenses.

Monthly expenses for your children's education expenses. If your children have not yet entered college, and have no other educational expenses, leave this amount at zero and enter an amount in the college fund entry fields in the total expenses at death section.

Monthly expenses expected to cover any cost of education or retraining for your spouse to re-enter the workforce.

Any other monthly expenses not included above.

The amount of funds available to your family after your expenses at death have been covered. This includes any current life insurance.

Your current age.

Age you wish to retire. This calculator assumes that the year you retire, you do not make any contributions to your retirement savings. So if you retire at age 65, your last contribution happened when you were actually age 64. This calculator also assumes that you make your entire contribution at the end of each year.

Your total household income. If you are married, this should include your spouse's income.

Total amount that you currently have saved toward your retirement. Include all sources of retirement savings such as 401(k)s, IRAs and Annuities.

This is the annual rate of return you expect from your investments after taxes. The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2007, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year (source: www.standardandpoors.com). During this period, the highest 12-month return was 61%, and the lowest was -39%. Savings accounts at a bank may pay as little as 1% or less.

It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.

This is the annual rate of return you expect from your investments during retirement, after taxes. It is often lower than the return earned before retirement due to more conservative investment choices to help insure a steady flow of income. The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2007, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year (source: www.standardandpoors.com). During this period, the highest 12-month return was 61%, and the lowest was -39%. Savings accounts at a bank may pay as little as 1% or less.

It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.

The percentage of your annual income you will save for your retirement goals. This should reflect the total you save toward your retirement. This should include any 403(b), 401(k), or 457(b) plans and your employer contributions to these plans. It should also include any other retirement accounts such as an IRA or a Roth IRA and any retirement savings in non-retirement accounts. This calculator assumes that you make one annual contributions at the end of each year, and any withdrawals happen once per year at the end of the year.

Annual percent increase you expect in your household income.

Total number of years you expect to use your retirement income.

The percent of your working year's household income you think you will need to have in retirement. This amount is based on your income earned during the last year you will work. You can change this amount to be as low as 50% and as high as 150%.

What you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has a long-term average of 3.1% annually, from 1925 through 2007. The CPI for 2007 was 2.4%, as reported by the Minneapolis Federal Reserve.

Check this box if you are married. Married couples have a higher maximum social security benefit than single wage earners.

Check this box if you wish to include social security benefits in your retirement planning. Social Security is based on a sliding scale depending on your income, how long you work and at what age you retire. Social Security benefits automatically increases each year based on increases in the Consumer Price Index. Including a spouse increases your Social Security benefits by 1.5 times your individual estimated benefit. Please note that this calculator assumes that you have only one working spouse. Benefits could be different if your spouse worked and earned a benefit higher than one half of your benefit. If you are a married couple, and both spouses work, you may need to run the calculation twice - once for each spouse and their respective income. This calculator provides only an estimate of your benefits.

The calculations use the 2008 FICA income limit of $102,000 with an annual maximum Social Security benefit of $26,220 per year for a single person and 1.5 times this amount for a married couple. To receive the maximum benefit would require earning the maximum FICA salary for nearly your entire career. You would also need to begin receiving benefits at your full retirement age of 66 or 67 (depending on your birthdate). Your actual benefit may be lower or higher depending on your work history and the complete compensation rules used by Social Security.

Your current age.

The amount you will contribute to an IRA each year. This calculator assumes that you make your contribution at the beginning of each year. In 2008, the maximum annual IRA contribution is $5,000 per individual. It is important to note that this is the maximum total contributed to all of your IRA accounts. Beginning in 2009, the contribution limit will adjust annually for inflation in $500 increments.

In 2008, if you are age 50 or older, you can make an additional "catch-up" contribution of $1000. In order to qualify for the "catch-up" contribution, you must turn 50 by the end of the year in which you are making the contribution.

You can no longer make contributions to a traditional IRA in the year you reach 70 1/2.

It is important to note that Roth IRA contributions are limited for higher incomes. If your income falls in a "phase-out" range you are allowed only a prorated Roth IRA contribution. If your income exceeds the phase-out range, you do not qualify for any Roth IRA contribution. For the purposes of this calculator, we assume that your income does not limit your ability to contribute to a Roth IRA. The table below summarizes the income "phase-out" ranges for Roth IRAs.

Tax filing status	2008 Income Phase-Out Range
Married filing jointly or Head of household	$159,000 to $169,000
Single	$101,000 to $116,000
Married filing separately	$0 to $10,000

The annual rate of return for your IRA. This calculator assumes that your return is compounded annually and your contributions are made at the beginning of each year. The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2007, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year (source: www.standardandpoors.com). During this period, the highest 12-month return was 61%, and the lowest was -39%. Savings accounts at a bank may pay as little as 1% or less.

It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.

Age you wish to retire. This calculator assumes that the year you retire, you do not make any contributions to your IRA. So if you retire at age 65, your last contribution happened when you were actually 64.

The current marginal income tax rate you expect to pay on your taxable investments.

The marginal tax rate you expect to pay on your investments at retirement.

Your adjusted gross income from your taxes. This is used to calculate whether you are able to deduct your annual contributions from your income tax statement.

Check the box if you are married. This is used to determine whether you can deduct your annual contributions from your taxes.

Check the box if you have an employer sponsored retirement plan, such as a 401(k) or pension. This is used to determine if you can deduct your annual contributions from your taxes.

The total of your Traditional IRA contributions that were deposited without a tax deduction. Traditional IRA contributions are normally tax-deductible. However, if you have an employer sponsored retirement plan, such as a 401(k), your tax deduction may be limited.

In 2008, for single tax filers with an employer sponsored retirement plan, an IRA contribution is fully tax-deductible if your income is below $53,000. It is then prorated between $53,000 and $63,000. If your income is over $63,000 and you have an employer sponsored retirement plan, such as a 401(k), you receive no tax deduction. For married couples, the same rules apply except the deduction is phased out between $83,000 and $103,000.

This calculator automatically determines if your tax deduction is limited by your income. However, there are two unusual situations not automatically accounted for where additional tax phase-outs are applied. First, if your spouse has an employer sponsored retirement plan but you do not, your tax deduction is phased out from $159,000 to $169,000. Second, if you are married filing separately and have an employer sponsored retirement plan, the income phase-out is from $0 to $10,000.

The total amount contributed to your IRA.

For the Roth IRA, this is the total value of the account. For the Traditional IRA, this is the sum of two parts: 1) The value of the account after you pay income taxes on all earnings and tax-deductible contributions and 2) what you would have earned if you had invested (in an ordinary taxable account) any income tax savings.

Please note, for distributions to include earnings that are tax free the Roth IRA must be opened for 5 tax years. Eligible tax free distributions include those taken for death or disability, after age 59 1/2, or for a first time home purchase.

Original amount of your mortgage.

The appraised value of your home when you purchased it.

Total length of your current mortgage in years.

Number of years remaining on your current mortgage.

Your current income tax rate.

To let the calculator determine your remaining balance, based on your original loan information and years remaining, check this box. To enter your own amount, leave this box unchecked.

The current appraised value of your home.

Balance of your mortgage that will be refinanced.

The annual interest rate for the new loan.

Number of years for your new loan.

This is the percentage of the new mortgage that is paid to the lender as the loan origination fee. Typically this fee is 1% of the loan balance.

Estimate of all other closing costs for this loan. This should include filing fees, appraiser fees and any other miscellaneous fees paid.

This is the number of points paid to the lender to reduce the interest rate on the mortgage. Each point costs 1% of the new loan amount.

Your current payment is the sum of principal, interest and PMI (Principal Mortgage Insurance). Because refinancing does not affect your insurance or taxes, they are not included here.

Your new payment is the sum of principal, interest and PMI.

Monthly cost of Principal Mortgage Insurance (PMI). For loans secured with less than 20% down, PMI is estimated at 0.5% of your loan balance each year. Monthly PMI is calculated by multiplying your starting loan balance by this percent and dividing by 12. When the equity in your home exceeds the percentage required for PMI, your PMI payment drops to zero.

Monthly principal and interest payment.

The number of months it will take for your monthly payment reduction to be greater than closing costs.

The number of months it will take for your interest and PMI savings to exceed your closing costs.

The number of months it will take for your after-tax interest and PMI savings to exceed your closing costs.

This is the most conservative breakeven measure. It is the number of months it will take for your after-tax interest and PMI savings to exceed both your closing costs and any interest savings from prepaying your mortgage. The prepayment amount used in this calculation is the amount that you would have to spend on closing costs.

Purchase price of the home you wish to buy.

Cash you have for the down payment and closing costs.

The current interest rate you expect to receive on your mortgage.

The number of years over which you will repay this loan.

Your property tax rate. 1% for a $100,000 home equals $1,000 per year in property taxes.

Your homeowner's insurance rate. 0.5% for a $100,000 home equals $500 per year for homeowner's insurance.

The percentage the lending institution charges for its origination fee. 1% for a $100,000 home equals $1,000.

The total number of points paid to reduce the interest rate of your mortgage. Each point costs 1% of your mortgage balance.

Estimate of all other closing costs for this loan. This should include filing fees, appraiser fees and any other miscellaneous fees paid.

Any association fees you are required to pay per month with the ownership of this home. Also include any other maintenance costs you expect to incur with the ownership of this home that you are not paying while you continue to rent.

Total funds remaining for down payment.

Total amount of loan.

Amount you currently pay for rent per month.

The rate of return, after taxes, you could receive if you invested your closing costs and down payment instead of purchasing a home.

The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2007, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year (source: www.standardandpoors.com). During this period, the highest 12-month return was 61%, and the lowest was -39%. Savings accounts at a bank may pay as little as 1% or less.

It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.

Your current marginal income tax rate.

What you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has a long-term average of 3.1% annually, from 1925 through 2007. The CPI for 2007 was 2.4%, as reported by the Minneapolis Federal Reserve. Inflation rate is used to adjust amounts subject to annual increases. These amounts include rent, insurance and tax payments.

Annual appreciation you expect in the home you are purchasing.

The percent of your home's selling price you expect to pay to a broker or real estate agent when you sell your home.

Total of principal, interest, taxes and insurance (PITI) paid per month for your home. Insurance includes Principal Mortgage Insurance (PMI) and homeowner's insurance.

The value of the tax deduction you receive on your mortgage's interest and home's property taxes. For example, if you have $900 in interest and $100 property taxes per month, the value of the tax deduction would be $250. (At a tax rate of 25%).

Total of principal paid per month on your mortgage.

Your initial house payment minus the value of the tax deduction and principal payment.

Net selling price of your home after subtracting any sales commissions.

Monthly principal and interest payment.

Monthly cost of Private Mortgage Insurance (PMI). For loans secured with less than 20% down, PMI is estimated at 0.5% of your loan balance each year.

Your current age in years.

The age you want to become a millionaire. For example, to find out what it could take to be a millionaire by age 40, enter 40 here.

Total value of all of your current investments. Although you could include your home and personal property in this amount - it is a bit more accurate to include only your savings, retirement accounts and investments.

The amount you will contribute each month to your investments. This calculator assumes that all savings are added to your account at the beginning of the month.

This is the annually compounded rate of return you expect from your investments. For the purposes of this calculator, taxation is not factored into the results. If you pay taxes on the interest, dividends or capital gains from these investments, you may wish to enter your after tax rate of return.

The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2007, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year (source: www.standardandpoors.com). During this period, the highest 12-month return was 61%, and the lowest was -39%. Savings accounts at a bank may pay as little as 1% or less.

It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.

What you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has a long-term average of 3.1% annually, from 1925 through 2007. The CPI for 2007 was 2.4%, as reported by the Minneapolis Federal Reserve.

Your current age. This is by far the most important aspect of asset allocation. For most people the majority of their portfolio is for their retirement. The younger you are, the less likely you need this money any time soon. This allows you to invest more aggressively in stocks that generally have the best long term returns. As you get older, it is advisable to move more of your investments to securities with less fluctuation such as cash and bonds. This can help insure the money is available when you need it.

This is the total value of your investment portfolio. Our asset allocator increases your stock exposure as your portfolio increases. Generally speaking, larger portfolios are less likely to leave individuals cash poor in a market downturn. This allows people with large portfolios to invest a bit more aggressively.

This is the amount you will be adding to your investments each year. Like portfolio size, the more you invest the more aggressive your investments should be.

This is the percentage of income you will need from your investments. Most people do not require any income from their investments until they retire.

The tax rate you expect to pay on your investments.

Your personal ability to tolerate your portfolio value fluctuating up and down. Many people overestimate their ability to tolerate risk. Unless you can handle a 20% decline in your portfolio during a stock market correction, you may wish to keep your risk tolerance at or below the mid-point.

This is your view of future economic growth and the overall health of the economy. The better your outlook, the more aggressive you can be with your investments.

The amount you wish to have in savings at the end of this savings plan.

The number of years you have to save.

Total you currently have saved toward this savings goal.

The amount you will contribute each month to your investments. This calculator also assumes that you make your contribution at the beginning of each month.

This is the annually compounded rate of return you expect from your investments. For the purposes of this calculator, taxation is not factored into the results. If you pay taxes on the interest, dividends or capital gains from these investments you may wish to enter your after tax rate of return.

The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2007, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year (source: www.standardandpoors.com). During this period, the highest 12-month return was 61%, and the lowest was -39%. Savings accounts at a bank may pay as little as 1% or less.

It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.

What you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has a long-term average of 3.1% annually, from 1925 through 2007. The CPI for 2007 was 2.4%, as reported by the Minneapolis Federal Reserve.

The current age of your children. This calculator is based on your children beginning their college education at age 18. The difference between their current age and 18 is the number of years you have to save.

The current estimated cost of one year of tuition and books. This amount should be per child and be specific to the school they may be interested in attending. The average published costs of college, for the 2007-08 school year, including tuition, room and board, books, supplies, transportation and other personal expenses, as reported by the College Board:

U.S. Undergraduate College Costs for 2007-08 School Year
Source: College Board's 2007 Trends in College Pricing, www.collegeboard.com

Type	Tuition & Fees	Room & Board	Total	Change from 2003-04
Public 4-Year (in-state tuition)	$6,185	$7,404	$13,589	5.9%
Public 4-Year (out-of-state tuition)	$16,640	$7,404	$24,044	5.4%
Private 4-Year	$23,712	$8,595	$32,307	5.9%

For the purposes of this calculator all expenses are assumed to be due at the end of the year.

The current estimated cost of one-year room and board. Like tuition and books, this amount should be per child and specific to the school they may be interested in attending. For the purposes of this calculator, all expenses are assumed to be due at the end of the year.

This is the percentage that you expect educational costs to increase per year. Data provided by The College Board's "Trends in College Pricing 2007" put tuition, room and board increases at approximately 6.4% per year, for the last ten years.

The total amount you currently have saved for your child's (or children's) education.

The dollar amount you plan to save per month toward your child's (or children's) education. All amounts are assumed to be added to your account at the beginning of the month.

This is the annually compounded rate of return you expect from your investments. This will also be the rate used if you end up with a negative balance, and need to borrow money to meet your goal. The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2007, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year (source: www.standardandpoors.com). During this period, the highest 12-month return was 61%, and the lowest was -39%. Savings accounts at a bank may pay as little as 1% or less.

It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.