Forecasting the Future Value of Your Roth-IRA or Roth-401(k)

[kork13]

JimOhio posted a link a while back (months if not years ago) where you could type in your profile of mutual funds and it would give you a % of what you were actually investing in as far as stocks/bonds/cash etc. ....... I tried to look in the archives but couldnt find the link...bummer

Are you talking about the Morningstar X-Ray?

[woodie96]

Thanks Kork....It is real close to it.....I think the one he put the link up to a while back showed it as a pie chart but I could be mistaken....

So the diversification as of yesterday, according to Xray:

US Stocks: 69%
Foreign Stocks: 18%
Bonds: 13%
Other: 4%
Cash: -3% (HUH....negative)

[JoeHoye]

An inflation thought

And just to keep you in check if you're feeling TOO good about it...

Discount that $2.2 Mil by a modest 2% inflation rate and in today's dollars that $2.2 would be $1,006,024

Or if you knocked 2% off the annual return for inflation then you'd be looking at $1,215,990 in 40 years.

Still not a bad chunk of change either way but it's always scary when you discount stuff back to today's dollars and add inflation into the mix.

Lot of very helpful advice. The inflation thing is much bigger then we might all hope. Inflation is at historical lows and without getting political in any way the policies that we are currently engaged in would seem to say in the future inflation will be higher without a doubt so you may want to use an even higher number. All this to save live as simple as possible and realize the value of every dollar that passes through your hands...sure wish I'd have learned this much earlier

[kv968]

Lot of very helpful advice. The inflation thing is much bigger then we might all hope. Inflation is at historical lows and without getting political in any way the policies that we are currently engaged in would seem to say in the future inflation will be higher without a doubt so you may want to use an even higher number. All this to save live as simple as possible and realize the value of every dollar that passes through your hands...sure wish I'd have learned this much earlier

Thanks, but I think I did enough damage with my 2% inflation rate

I, myself, don't even want to figure it out using a 3.4% one.

[kv968]

Thanks Kork....It is real close to it.....I think the one he put the link up to a while back showed it as a pie chart but I could be mistaken....

So the diversification as of yesterday, according to Xray:

US Stocks: 69%
Foreign Stocks: 18%
Bonds: 13%
Other: 4%
Cash: -3% (HUH....negative)

I don't know why your cash would be negative unless one of your funds is using margin.

Can I ask what the tickers are for the funds you hold?

[jpg7n16]

LOL....I'm such a dummy......it sure makes a difference when you put the % sign in the formula.....I was happy that I was going to be a multi-gazillionaire.....
Til I figured out my error.....OOPSIE

Yeah, that can happen. Here's what I did to help anyone who's looking. Created spreadsheet available here:

https://docs.google.com/spreadsheet/ccc?key=0AqUB5Cvg7RXidDBPMTQ4a09sUnctaGNmN0tzNENhQ2c

Fill out the stuff in yellow, spreadsheet does everything else for you.

Hopefully that cuts down on the mistakes

[jpg7n16]

I don't know why your cash would be negative unless one of your funds is using margin.

Can I ask what the tickers are for the funds you hold?

It's not neccessarily always margin - it could be other financial arrangements. I've seen this before especially with the PIMCO total return fund:

PIMCO Total Return D Report (PTTDX) | Asset Allocation Summary

They're negative 53% in short term cash holdings.

Per the prospectus:

The Fund may invest, without limitation, in derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or asset-backed securities, subject to applicable law and any other restrictions described in the Fund's prospectus or Statement of Additional Information. The Fund may purchase or sell securities on a when-issued, delayed delivery or forward commitment basis and may engage in short sales. The Fund may invest up to 10% of its total assets in preferred stock, convertible securities and other equity related securities.

The Fund may, without limitation, seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs or dollar rolls). The "total return" sought by the Fund consists of income earned on the Fund's investments, plus capital appreciation, if any,which generally arises from decreases in interest rates, foreign currency appreciation, or improving credit fundamentals for a particular sector or security.