Posted: 12/27/2005 5:01:23 PM EDT
| How much in todays dollars will you need to retire comfortably, travel, continue our hobbies, and then leave some for the kids. I just ran some numbers for our family and if we continue to save at a reasonable level and assume an 8% return til age 65 we can save about 15 to 17 times our current income level. We will also have our home and business that currently have a value of about four years income. By the way, this years return on my business's "simple retirement plan" and our personal savings plan is at just over 15% return. So averaging 8% should be a reasonable goal. |
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There is a calculation you can use to determine that called "the future value of a single sum" a) What percentage rate are you investing at? b) How long will the money remain invested at this rate? c) How much $$ will you have to initially deposit (or invest)? There are multipliers in financial calculation tables to show you how to determine this. Basically, the formula is telling you how much, for instance, $10,000 at x% interest for x years will amount to how much? It also works in reverse, say, how much do I have to invest today to have $500K in 10 years? Here's a link to UIC free calculator. Link: http://www.uic.edu/classes/actg/actg500/pfvatutor.htm |
Made hot. I have to be of some use around here 
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