Math help please

[happygirl]

Hi all. I have a question about retirement. My DH and I got a late start and are hoping to make up for lost time. We've been investing the maximum allowed amount into his 401k and our IRA's, so total 26500 per year. If we continue to do this for the next 25 years, how much might we expect to have, assuming a conservative 6-8% gain?

Is 6-8% a reasonable amount to estimate? We did better than that this past year, but I'd rather err on the side of caution for a long term estimate.

I'm sure there's an easy way to figure this with my calculator, but I'm not a math person at all and kept coming up with some number in the billions! If only...

Thanks so much!

[littleroc02us]

try this website: Compound Interest Calculator

[jpg7n16]

There is sort of an easy way, but you have to understand a financial calculator, not a normal one.

(assuming you started with $0, since you didn't say a current balance)

At 6%, you would have $1,453,909.57 when you begin retirement (and then that money would be largely taxable when withdrawn)

At 8%, you would have $1,937,307.41.

If you are holding a well allocated portfolio, 6-8% is very reasonable. Not guaranteed, but reasonable.

[MonkeyMama]

Here is a good compounding calculator:

Compound Interest Calculator

[jpg7n16]

try this website: Compound Interest Calculator

Here is a good compounding calculator:

Compound Interest Calculator

A matter must be established by the testimony of two or three witnesses.
Deuteronomy 19:15

Looks like that link is the way to go

[happygirl]

Haha, good minds must think alike! Thanks!