The assumed asset allocation for the analysis uses three asset classes and a generic target date asset allocation appropriate for college savers. Conversely, the amount saved may fail to reach the level illustrated in 25% of the market scenarios. This means the amount saved meets or exceeds the illustrated savings amount in 75% of the hypothetical market scenarios (with differing market conditions). The resulting savings level varies by market conditions but the calculator illustrates the potential to meet the spending goal at the 75% confidence level. General inflation is assumed to be 2.5% annually. The spending need uses today's cost per year estimate and grows it annually by 2.5%+ inflation until the expense is incurred over 4 years. The calculator assumes indicated savings start immediately and continue until the hypothetical student is finished with school savings and withdrawals are modeled to occur at the end of the year. Intermediate Term Government Bonds, and 30-day U.S. Stocks (domestic and foreign), bonds, and short-term are represented by S&P 500®, U.S. The user-indicated current savings and contributions, along with future savings amounts input by the user are then projected based on Fidelity's assumed rates of return and volatility based on historical annual data from 1926 through the most recent year-end data available from Morningstar. The calculator combines the user's inputs with assumptions about the length of college payments as well as the growth of college costs.

The analysis models a hypothetical investor's savings behavior in different market scenarios.

Fidelity college savings planner