Use this calculator to compare hypothetical growth of savings and investments. Historically, long-term savings rates have rarely been above 4%, while long-term average of U.S. stock market has averaged around 10% per year.

But remember: investing always carries risk of loss, and past performance can never guarantee future results. To illustrate: On average, the U.S. market has dropped 20% or more every four to five years before reverting to the 10% long-term historical average. And the higher the rate of return you're targeting, the greater the investment risk.

This is why a smart wealth strategy blends market investments in a diversified portfolio that is aligned with your time horizon and risk tolerance — combined with a cash cushion — so you can capture long-term growth while also protecting yourself against short-term downturns.