The Contributions Graph shows portfolio values based on the Starting Value and Annual Contribution amounts, as well as the asset allocation inputted below.
Interpreting the Graph:
Independent portfolios are formed at the start of every month in the historical record and portfolio values are calculated using actual historical returns.
The Contributions Graph calculates portfolio values through time for every independent portfolio. The Starting Value is invested at portfolio formation (beginning of the period) and the Annual Contributions occur at the end of every annual period.
The Contributions Graph shows portfolio values ranked by percentile for each holding period. For example, the Worst portfolio value in year 10 corresponds to the worst portfolio value after 10 years invested. Likewise, the 20% value after 15 years invested corresponds to the portfolio value in the 20th percentile (worst 20%) of all monthly starting portfolios after 15 years invested.
Also shown in the graph is the goal amount and how many years it took to meet this goal on the best and worst starting months historically.