What do the sample portfolio sheets tell?
To explain to our customers how our financial models and tools work, we choose Intel Corp’s 401k retirement plan, one of the most comprehensive plans that we know, as well as KLA-Tencor and Virginia Health to represent medium and small company’s 401k plans as our sample portfolios. We analyzed and modeled the three portfolios and their performance over period of the past seven years. The chart contains two curves. One is the S&P 500 index’s cumulative return over the same seven years period. The second line shows the portfolio’s seven year cumulative return assuming the portfolio has been following our model’s suggested asset allocation method. The portfolio’s cumulative return was calculated using the same models that our customers might use on our website. For illustrative purpose, we have made some assumptions. First, we assume that portfolio’s chosen risk level is medium (510 year investment time), and the maximum weight of any single fund asset within portfolio is 30%. That is to
