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To calculate the projected values we use financial models to forecast the range of possible outcomes. These are based on a timeframe from now until your child’s 18th birthday or a minimum of 5 years and include the impact of fees and fund charges.
Projected value: this is the midpoint of the range of possible outcomes.
If markets perform better: the top 10% of outcomes achieve this or higher due to better than anticipated market performance.
If markets perform worse: the bottom 10% of outcomes result in this or lower due to worse than anticipated market performance.
The differences between projected values will usually be smaller for lower risk plans.
Projections should only be viewed as forecasts, and are not a reliable indicator of future performance. Tax treatment may vary depending on your individual circumstances.