Future Value of Money - Retirement Tool
-
Upload
eric-bernard -
Category
Documents
-
view
219 -
download
0
Transcript of Future Value of Money - Retirement Tool
-
8/13/2019 Future Value of Money - Retirement Tool
1/16
BASIC EXPLANATION OF A RETIREMENT PLAN WITH
Calculator
Initial Amount Invested 30,000inputs
Annual Rate of Return(%) 10%
Years Invested 20
outputs Final Amount at Retirement 201,825
35% Net of Taxes (35%) 131,186Income Tax Rate
What can you do
with the money
at age 65
Explanations
and Suggestions
for approaching
Retirement Money
Based on common sense, where you can Invest your 30,000 dollars saved,
as a basic, 10 year, or 20 year investment alternative: In an S&P 500 Index Fund.
See S&P 500 Historical Returns in Table below. This is also called passive invest
because you simply follow an index, you dont choose a particular money mana
you choose a reliable mutual fund company that offers an index fund.
Source of Table: Historical Annual Returns For The S&P 50
X
-
8/13/2019 Future Value of Money - Retirement Tool
2/16
website link to table in september 2012: http://www.istockanal
-
8/13/2019 Future Value of Money - Retirement Tool
3/16
A RETIREMENT CALCULATOR
Youve saved 30,000 dollars today, and youre more or less 45 years
USD You can change the currency here, to your country s currency, it will adju
Annual percentage of amount invested generated every year. Assumes r
Assumes you start saving for retirement at age 45, until age 65, for twent
USD At age 65, you have a lump sum of $201,825 dollars, slightly more than t
USD Net of taxes, the lump sum at age 65 becomes $131,186, over one hund
from your banks checking or savings account.
This amount is a lump sum, not an annuity, for living expenses from the a
It is a lump sum accumulated over 20 years of investing 30 thousand doll
After 20 years, you reach the lump sum of 201.825, slightly more than 20
Net of Income Taxes (Final Amount at Retirement reduced by income tax
Assuming youll die at age 95, this means about $364 dollars ($131,186
Assuming youll die at age 85, this means about $546 dollars ($131,186
Numbers are meant to be somewhat average, you can adjust to your cas
This shows the power of compound interest, over 20 years well invested,
With these numbers, you can approach an insurance company today, at
ent If you bring to them 30 thousand dollars today, what is the lump sum or a
er, The other alternative is to approach a mutual fund company such as Fide
for 20 years, seeing what historical rate of return the fund has achieved o
Index.
X Youd want to take into accou
and look at the row titled 2007
-
8/13/2019 Future Value of Money - Retirement Tool
4/16
Based on cReturns av10.36% an
COLUMN
lyst.com/article/viewarticle/articleid/2803347
-
8/13/2019 Future Value of Money - Retirement Tool
5/16
f age, with about 20 years until retirement. You can change this in the adjacent spreadsheet,
t the other currency cells automatically. USD stands for U.S. dollar, it is the official code used
einvestment of interest every year, also at 10%: This is compounding interest, or reinvesting in
years, and so assumes you will retire at age 65 and would like a lump sum to live off during r
o hundred thousand dollars.
ed thirty thousand dollars available to pay for living expenses during retirement, which you can
ge of 65, until you die.
ars, at 10% annual interest on that capital, the initial amount invested of $30,000 dollars, thirty
0.000 dollars
es, which you can adjust), you can then use $131,186 dollars to live off, for living expenses, af
ollars / 30 years) / (12 months per year), dollars) of monthly disposable income to pay for livin
ollars / 20 years) / (12 months per year), dollars) of monthly disposable income to pay for livin
e in the adjacent spreadsheet. You can see what your lump sum amounts to, after 20 years, in
in something like a passive index fund such as the S&P 500, Nasdaq, or Dow Jones, money g
ge 45, and see what they can offer based on your savings of thirty thousand dollars today:
nnuity they can offer, net of taxes, at age 65, and between the ages of 65 and the age you will
lity Investments or Vanguard to invest your money in an index fund (such as Nasdaq or Dow J
er 10 years, minimum 5 years, comparing it to the insurance company alternative. The rate s
nt these two columns, a twenty year average of annual returns, and an average annual return since 196
, the one that has the most recent information on average annual returns of the S&P 500.
-
8/13/2019 Future Value of Money - Retirement Tool
6/16
olumns 3 and 7, of the row titled 2007, the last year of information for annual returns of the S&P 500: erage 10% or so, on average, annually, when you look at a ten year recent period, 2004, 2005, 2006, a
nual return on average, and over an average period of 20 years, the S&P 500 returns 11.81% annually.
3 COLUMN 7
-
8/13/2019 Future Value of Money - Retirement Tool
7/16
titled 'Your Case'.
by FX dealers.
terest earned.
tirement.
draw every month
housand dollars.
er age 65.
expenses.
expenses.
your case.
ows well.
ie.
nes or S&P 500)
ould be 10% or so.(see table figures below)
, to 2007,
-
8/13/2019 Future Value of Money - Retirement Tool
8/16
d 2007.
-
8/13/2019 Future Value of Money - Retirement Tool
9/16
BASIC EXPLANATION OF A RETIREMENT PLAN WITH
Calculator
Initial Amount Invested 30,000inputs
Annual Rate of Return(%) 10%
Years Invested 20
outputs Final Amount at Retirement 201,825
35% Net of Taxes (35%) 131,186Income Tax Rate
What can you do
with the money
at age 65
Explanations
and Suggestions
for approaching
Retirement Money
Based on common sense, where you can Invest your 30,000 dollars saved,
as a basic, 10 year, or 20 year investment alternative: In an S&P 500 Index Fund.
See S&P 500 Historical Returns in Table below. This is also called passive invest
because you simply follow an index, you dont choose a particular money mana
you choose a reliable mutual fund company that offers an index fund.
Source of Table: Historical Annual Returns For The S&P 50
X
-
8/13/2019 Future Value of Money - Retirement Tool
10/16
website link to table in september 2012: http://www.istockanal
-
8/13/2019 Future Value of Money - Retirement Tool
11/16
A RETIREMENT CALCULATOR
Youve saved 30,000 dollars today, and youre more or less 45 years
USD You can change the currency here, to your country s currency, it will adju
Annual percentage of amount invested generated every year. Assumes r
Assumes you start saving for retirement at age 45, until age 65, for twent
USD At age 65, you have a lump sum of $201,825 dollars, slightly more than t
USD Net of taxes, the lump sum at age 65 becomes $131,186, over one hund
from your banks checking or savings account.
This amount is a lump sum, not an annuity, for living expenses from the a
It is a lump sum accumulated over 20 years of investing 30 thousand doll
After 20 years, you reach the lump sum of 201.825, slightly more than 20
Net of Income Taxes (Final Amount at Retirement reduced by income tax
Assuming youll die at age 95, this means about $364 dollars ($131,186
Assuming youll die at age 85, this means about $546 dollars ($131,186
Numbers are meant to be somewhat average, you can adjust to your cas
This shows the power of compound interest, over 20 years well invested,
With these numbers, you can approach an insurance company today, at
ent If you bring to them 30 thousand dollars today, what is the lump sum or a
er, The other alternative is to approach a mutual fund company such as Fide
for 20 years, seeing what historical rate of return the fund has achieved o
Index.
X Youd want to take into accou
and look at the row titled 2007
-
8/13/2019 Future Value of Money - Retirement Tool
12/16
Based on cReturns av10.36% an
COLUMN
lyst.com/article/viewarticle/articleid/2803347
-
8/13/2019 Future Value of Money - Retirement Tool
13/16
f age, with about 20 years until retirement. You can change this in the adjacent spreadsheet,
t the other currency cells automatically. USD stands for U.S. dollar, it is the official code used
einvestment of interest every year, also at 10%: This is compounding interest, or reinvesting in
years, and so assumes you will retire at age 65 and would like a lump sum to live off during r
o hundred thousand dollars.
ed thirty thousand dollars available to pay for living expenses during retirement, which you can
ge of 65, until you die.
ars, at 10% annual interest on that capital, the initial amount invested of $30,000 dollars, thirty
0.000 dollars
es, which you can adjust), you can then use $131,186 dollars to live off, for living expenses, af
ollars / 30 years) / (12 months per year), dollars) of monthly disposable income to pay for livin
ollars / 20 years) / (12 months per year), dollars) of monthly disposable income to pay for livin
e in the adjacent spreadsheet. You can see what your lump sum amounts to, after 20 years, in
in something like a passive index fund such as the S&P 500, Nasdaq, or Dow Jones, money g
ge 45, and see what they can offer based on your savings of thirty thousand dollars today:
nnuity they can offer, net of taxes, at age 65, and between the ages of 65 and the age you will
lity Investments or Vanguard to invest your money in an index fund (such as Nasdaq or Dow J
er 10 years, minimum 5 years, comparing it to the insurance company alternative. The rate s
nt these two columns, a twenty year average of annual returns, and an average annual return since 196
, the one that has the most recent information on average annual returns of the S&P 500.
-
8/13/2019 Future Value of Money - Retirement Tool
14/16
olumns 3 and 7, of the row titled 2007, the last year of information for annual returns of the S&P 500: erage 10% or so, on average, annually, when you look at a ten year recent period, 2004, 2005, 2006, a
nual return on average, and over an average period of 20 years, the S&P 500 returns 11.81% annually.
3 COLUMN 7
-
8/13/2019 Future Value of Money - Retirement Tool
15/16
titled 'Your Case'.
by FX dealers.
terest earned.
tirement.
draw every month
housand dollars.
er age 65.
expenses.
expenses.
your case.
ows well.
ie.
nes or S&P 500)
ould be 10% or so.(see table figures below)
, to 2007,
-
8/13/2019 Future Value of Money - Retirement Tool
16/16
d 2007.