Why wouldn’t you? Here’s one thing you can do to pay your future self.
Here’s how to use the calculator:
Your Current Age: It doesn’t matter how old you are. It’s never too late to start.
Anticipated Retirement Age: Most investment vehicles allow penalty-free distributions after 59 1/2.
Current Retirement Savings: Enter whatever you’ve saved so far. Even if you don’t have anything saved yet, don’t worry! You’re about to meet a lovely thing called “compound interest”.
Monthly Amount Invested: Whatever you can afford to put away each month. The more the better, but I recommend having the mindset that you won’t see this money again until your sixties. So, make sure you still have money to live on.
Annual Interest Rate (ROI): The annual rate at which you think your money will grow. Not sure? Your return will vary depending on what you invest your money in. Over the past 50+ years, the average stock market return has been roughly 8%-12%.¹ Somewhere in that range is a good place to start.
Then, click CALC.
This calculator easily answers the question "Given the value of my current investments and assuming future monthly investments of "X", what will be the value of my retirement nest egg?
The user enters their "Current Age", their exprected "Retirement Age", the "Monthly Amount Invested", and the "Annual Interest Rate (ROI)" (annualized Return on Investment one expects to earn).
The calculator quickly calculates the expected final value of their investments and creates an investment schedule plus a set of charts that will help the user see the relationship between the amount invested and the return on the investment. The schedule can be copied and pasted to Excel, if desired.
If you need a more advanced "Retirement Calculator" - one that calculates many more unknowns and one that calculates assuming retirement income and not a final lump sum then try the calculator located here: https://AccurateCalculators.com/retirement-calculator
All calculators will remember your choice. You may also change it at any time.
Clicking "Save changes" will cause the calculator to reload. Your edits will be lost.
Now, that you’ve calculated your personal numbers, let’s talk about what they mean.
Available At Retirement: The total amount of money you’ll have in the account at your Anticipated Retirement Age.
Number of Contributions: The number of times you’ll deposit the Monthly Amount Invested.
Total Amount Invested: The sum of all the deposits you’ve made.
Interest Earned: The amount that your money grew while it was invested, using the Annual Interest Rate (ROI) you entered.
Last Deposit Date: The date of your final deposit.
Great question! I recommend a few things:
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