Welcome to your retirement plan website

The probability illustrations generated from the engine are based on “Monte Carlo” simulations of 500 possible investment scenarios for a given time period and assume a range of possible returns. The illustrations are generated according to models developed by Morningstar Investment Management LLC, a leading independent provider of asset allocation, manager selection, and portfolio construction. The Your Retirement Outlook® graphic reflects the difference between the model’s estimated annual income (which corresponds to a 70% probability level of income in the investment scenarios simulated) and your annual income goal.

When forecasting the probability of achieving your income goal, the model employs different returns for different asset classes, based on Morningstar Investment Management’s capital market assumptions developed using historical and forward-looking data. Forecasts of expected return, expected standard deviation and correlation among asset classes based on Morningstar Investment Management LLC's proprietary equity, fixed income, currency and risk models. Current assets are assigned to asset classes based on Morningstar Categories, and fees and charges inherent in investing are incorporated with an average fee assumption for each asset class. The benchmarks used for modeling the various asset classes are below. Return assumptions are updated annually; these updates may have a material impact on your projections. Return assumptions are estimates not guarantees. The returns you experience may be materially different than projections. You cannot invest directly in an index.                                                                                                                                             

Lower Risk/
            Volatility Asset Class
            Cash Alternatives
            Short Term Bonds
            Aggregate Bonds
            Foreign Bonds
            Direct Real Estate
            High Yield Bonds
            TIPS
            Long Term Bonds
            Large Cap Value Equity
            Large Cap Equity
            Mid Cap Value Equity
            Mid Cap Equity
            International Equity
            Commodities
            Mid / Small Cap Value Equity
            Large Cap Growth Equity
            Mid / Small Cap Equity
            Small Cap Value Equity
            Small Cap Equity
            Mid Cap Growth Equity
            Mid / Small Cap Growth Equity
            REITs
            Small Cap Growth Equity
            Emerging Markets EquityBenchmark
            BofA ML US Treasury Bill 3 Month USD
            BarCap US Govt/Credit 1-3 Yr TR USD
            Barclays Capital US Agg Bond TR
            Barclays Global Aggregate Ex USD TR
            NCREIF Transaction Based Index
            Barclays Capital US Corporate High Yield TR
            Barclays Capital Global Inflation Linked US TIPS TR
            Barclays Capital US Govt/Credit Long TR
            Russell 1000 Value TR
            Russell 1000 TR
            Russell Mid Cap Value TR
            Russell Mid Cap TR
            MSCI EAFE GR
            Bloomberg Commodity TR
            Russell 2500 Value TR
            Russell 1000 Growth TR
            Russell 2500 TR
            Russell 2000 Value TR
            Russell 2000 TR
            Russell Mid Cap Growth TR
            Russell 2500 Growth TR
            FTSE NAREIT Equity REITs TR
            Russell 2000 Growth TR
            MSCI EM GR

Higher Risk/
            Volatility

Unless you choose otherwise or your employer supplies different information, the probability illustrations assume retirement at the age at which you qualify for full Social Security benefits and an annual retirement income goal of 80% of your projected final working salary. Social Security estimates are based on the Social Security Administration methodology and your current salary. The probability illustrations also assume a consistent contribution percentage and asset allocation (no future changes or rebalancing unless you are subscribed to a managed account or a target date asset allocation service), annual inflation of approximately 2%, and annual salary increases based on a calculation that incorporates multiple factors including a salary growth curve and inflation. Mortality assumptions are based on the Society of Actuaries tables.

The engine utilizes models, algorithms and/or calculations ("Models"). The Models are subject to a number of limitations. Returns associated with market extremes may occur more frequently than assumed in the Models. Some asset classes have relatively limited histories; for these classes the Models use historical data for shorter time periods. The Model does not consider other asset classes such as hedge funds or private equity, which may have characteristics similar or superior to those used in the Model. Capital market assumptions are forecasts which involve known and unknown risks, uncertainties, and other factors which may cause the actual results to differ materially and/or substantially from any future results, performance, or achievements expressed or implied by those projections for any reason. Additionally, Models have inherent risks. Models may incorrectly forecast future behavior or produce unexpected results resulting in losses. The success of using Models depends on numerous factors, including the validity, accuracy and completeness of the Model’s development, implementation and maintenance, the Model’s assumptions, factors, algorithms and methodologies, and the accuracy and reliability of the supplied historical or other data. If incorrect data is entered into even a well-founded Model, the resulting information will be incorrect. Investments selected with the use of Models may perform differently than expected as a result of the design of the Model, inputs into the Model, or other factors.

There is no guarantee that your income goal will be achieved or that the aggregate accumulated amount will ensure a specified annual retirement income. Results may vary with each use and over time.

IMPORTANT: The projections or other information generated by the engine regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Moreover, even though the tool’s estimates are statistically sound based upon the simulations it runs, the tool cannot foresee or account for every possible scenario that may negatively impact your financial situation. Thus you should monitor your account regularly and base your investment decisions on your time horizon, risk tolerance, and personal financial situation, as well as on the information in the prospectuses for investments you consider.

Transamerica has licensed the Morningstar® Wealth Forecasting EngineSM from Morningstar, Inc., which is used by Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc, in the services it provides to participants. Morningstar and Morningstar Investment Management are not affiliated with Transamerica. The Morningstar name and logo are registered marks of Morningstar, Inc.