Can You Trust Your Savings Calculator? Humle Fonder Thinks Not
Most savings calculators show a single, optimistic scenario. Humle Fonder has taken a different approach.
As part of a campaign focused on long-term savings for children, the firm has launched "Probably the Most Honest Savings Calculator"– a tool developed in-house by David Seekell, Head of Sustainable Investments and ESG, after identifying shortcomings in the calculators already available on the market.
Rather than projecting one outcome, the calculator runs hundreds of simulated market paths where annual returns vary – and are sometimes negative. Fees and ISK investment account tax can be included in the calculation. The result is a range of scenarios that gives a more accurate picture of what can realistically happen to your money over time.
"Many monthly savings calculators rely on oversimplified assumptions that can easily mislead. With our new tool, we want to be straightforward about the fact that investing in funds carries risk – and give people a better foundation for making decisions about their own or their children's savings," says Petter Löfqvist, Lead Portfolio Manager at Humle.
The calculator is available on Humle Fonder's children's savings page.
