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Savings
Calculator Consistent
investments over a number or years can be an effective strategy to accumulate wealth. Even
small additions to your savings add up over time. This calculator demonstrates how to put
this savings strategy to work for you!
Please Click on the Graph to Update
the Information
Definitions
| Starting amount |
The starting balance or current
amount you have invested or saved. |
| Additional contributions |
The amount that you plan on adding
to your savings or investment each period. The investment period options include monthly,
quarterly and annually. This calculator assume that you make your contribution at the
beginning of each period. |
| Years |
The total number of years you are
planning to save or invest. |
| Rate of return |
The annual rate of return for this
investment or savings account. Historically the major stock indexes have averaged 11% to
12% per year. If you plan on withdrawing your money within five years, you may wish to
choose a more conservative rate of return. An ordinary savings account earns 2% to 5%. |
| Compounding |
This is the frequency that your
investment's interest or income is added to your account. The more frequently this occurs,
the sooner your accumulated interest income will generate additional interest. For stock
and mutual fund investments you should choose 'Annual'. For savings accounts and CDs all
of the options are valid, although you will need to check with your financial institution
to find out how often interest is being compounded on your particular investment. |
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