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Investment Goal Calculator |
What will it
take to reach your investment goal? Use this investment
goal calculator to determine how much your investment
might grow before taxes, after taxes and after
taxes and inflation. It will also provide suggestions
on what to change if your plan doesn't look like
it will meet your investment goal. |
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Definitions
- Investment
goal
- Your
goal for the total value
of your investment or investments.
- Number
of years to accumulate
- The
number of years you have
to save.
- Amount
of initial investment
- Total
you amount you will initially
invest or have currently
have invested toward your
investment goal.
- Periodic
contribution
- The
amount you will contribute
each period to your investment.
You are also able to select
whether you wish to have
your contribution happen
at the beginning or the
end of the period.
- Investment
frequency
- The
frequency you will make
regular contributions to
this investment.
- Rate
of return on investment
- This
is the rate of return you
expect from your investments.
You are also able to select
the frequency that earnings
are compounded in your investment
account. The actual rate
of return is largely dependent
on the type of investments
you select. From January
1970 to December 2008, the
average annual compounded
rate of return for the S&P
500, including reinvestment
of dividends, was approximately
9.7% (source: www.standardandpoors.com).
During this period, the
highest 12-month return
was 61%, from June 1982
through June 1983. The lowest
12-month return was -39%,
which happened twice, once
from September 1973 to September
1974 and again from November
2007 to November 2008. Savings
accounts at a bank may pay
as little as 1% or less
but carry significantly
lower risk of loss of principal
balances.
It is important to remember
that future rates of return
can't be predicted with
certainty and that investments
that pay higher rates
of return are generally
subject to higher risk
and volatility. The actual
rate of return on investments
can vary widely over time,
especially for long-term
investments. This includes
the potential loss of
principal on your investment.
It is not possible to
invest directly in an
index and the compounded
rate of return noted above
does not reflect sales
charges and other fees
that funds and/or investment
companies may charge.
Expected Inflation
Rate
- What
you expect for the average
long-term inflation rate.
A common measure of inflation
in the U.S. is the Consumer
Price Index (CPI), which
has a long-term average
of 3.1% annually, from 1925
through 2008. The CPI for
2008 was 4.0%, as reported
by the Minneapolis Federal
Reserve.
- Federal
marginal tax rate
- Your
Federal marginal tax rate.
You can use the table below
to estimate your marginal
tax rate:
| Filing
Status and Income
Tax Rates 2008
Caution:
Do not use these
tax rate schedules
to figure 2007 taxes.
Use only to figure
2008 estimates.
|
| 10% |
$0 - 16,050 |
$0 - 8,025 |
$0 - $11,450 |
$0 - 8,025 |
| 15%
|
$16,051- 65,100 |
$8,026- 32,550 |
$11,451- 43,650 |
$8,026- 32,550 |
| 25% |
$65,101- 131,450 |
$32,551- 78,850 |
$43,651- 112,650 |
$32,551- 65,725 |
| 28% |
$131,451- 200,300 |
$78,851- 164,550 |
$112,651- 182,400
|
$65,726- 100,150 |
| 33% |
$200,301- 357,700 |
$164,551- 357,700 |
$182,401- 357,700 |
$100,151- 178,850 |
| 35% |
over $357,700 |
over $357,700 |
over $357,700 |
over $178,850 |
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Source: http://www.irs.gov/pub/irs-drop/rp-07-66.pdf
- State
marginal tax rate
- Your
marginal state tax rate.
If your state taxes are
deductible on your Federal
return, we will take this
into account when calculating
your combined state and
Federal marginal tax rate.
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| Information and interactive
calculators are made available to you as self-help
tools for your independent use and are not intended
to provide investment advice. We cannot and do not
guarantee their applicability or accuracy in regards
to your individual circumstances. All examples are
hypothetical and are for illustrative purposes.
We encourage you to seek personalized advice from
qualified professionals regarding all personal finance
issues. |
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