Modeling
How LoFi Wealth models your habit
LoFi Wealth (Lofi) doesn’t try to predict the future.
Instead, it uses historical market data as a way to illustrate what consistent investing has looked like over long periods of time. When you set a time horizon (for example, 30 or 50 years), Lofi Wealth looks at real S&P 500 performance over that same length of time in the past.
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A 30-year plan uses a 30-year historical period
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A 50-year plan uses a 50-year historical period
Your habit (e.g. $100 per week) is then applied across that period, step by step, as if it had been followed consistently during those years.
This allows LoFi to show:
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How contributions accumulate over time
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How compounding has historically behaved
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How market ups and downs affect long-term outcomes
The “smoothed average (historical)” you see is not a guess about the future. It’s simply the average annual growth rate from that historical period, used to create a smooth reference line.
What this means (and what it doesn’t)
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These are illustrations, not forecasts
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They show what could have happened, not what will happen
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Different time periods produce different outcomes
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Real markets are volatile, this model simplifies that into something understandable
Why this approach
Most people struggle to visualize what long-term consistency actually does. By anchoring your habit to real historical periods, LoFi Wealth makes the impact of small, repeated actions easier to see, without claiming certainty about the future.
Important information
Lofi Wealth (LoFi) is a habit-tracking tool. It does not provide financial advice, investment recommendations, or personalised guidance. All figures, charts, and projections shown in Lofi are illustrative only. They are based on historical market data and simplified assumptions, including consistent contributions and uninterrupted compounding. Real-world investing does not behave this way. Past performance is not indicative of future results. Markets vary across time periods, and outcomes can differ materially depending on when you start, how long you invest, and the conditions experienced along the way.
The S&P 500 is used as a widely recognised benchmark for long-term market behaviour. It is not a recommendation, and users cannot invest directly in an index. Actual investment results will differ due to fees, taxes, timing, product choice, and individual circumstances. Lofi does not track, verify, or connect to your real financial accounts or transactions. Any habit you log is self-reported and independent of actual investment activity. You are solely responsible for your financial decisions, including where and how you choose to invest. If you are unsure, consider seeking advice from a licensed financial professional.