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Retirement Value Investment
Explanation:
This is the estimate of your account value at retirement. Typically, the value of an investment account grows over time. We have assumed an annual return of 5%, based on the 10-year average return for the Vanguard Retirement Income Index.
The specific number of dollars in your account when you retire will likely be higher than this estimate, since our estimates are based on today's dollars.
We use today's dollars in order to give you a better feel for the true value. For example, instead of telling you that an item will be worth $1,200 ten years from now, we are telling you that the value of the item in today's dollars will be $1,000, which is much easier to compare against your current income and expenses.