Source: Schwab Center for Financial Research with data from Morningstar, Inc.

"Fully invested" in the market is represented by the S&P 500® Total Return Index, using data from January 1970–March 2021. T-bills are represented by the total returns of the Ibbotson U.S. 30-day Treasury Bill Index. Since 1970, there have been a total of six periods where the market dropped by 20% or more. The cumulative return for each period and scenario is calculated as the simple average of the cumulative returns from each period and scenario. Indices are unmanaged, do not incur fees or expenses, and cannot be invested in directly. Dividends and interest are assumed to have been reinvested, and the example does not reflect the effects of expenses, taxes or fees and if it had, performance would have been substantially lower. Past performance is no indication of future results.