Help with NISA compound interest calculation

[Tkydon]

Yeah, something not quite right, but I can't see your formiulae. Maybe there is not a $ sign in the right place so the cells are not anchored properly

You might add one more row at the bottom for 0 years remaining...

In Cell C4 put this formula

=B4*(1+A$1)^A4

Then swipe and fill that down to the bottom

Then select that column and copy / paste it to Column I, and again to Column O

What do you get now?

Without the last year 0, I make it

18,720,000 37,534,693 NISA 3,168,000 5,821,988 iDECO 2,640,231 4,852,004 Piece Of Shit Company DB Plan


Total 48,208,685


With the last year 0, I make it

19,440,000 38,254,693 NISA 3,312,000 5,965,988 iDECO 2,760,253 4,972,026 Piece Of Shit Company DB Plan


Total 49,192,707


At 8%, 75,576,713

[Tkydon]

One thing that will change the final totals would be the number of times the 'interest' is compounded per year.

If the growth is compounded once per year the the end of the year, then you will get these values.

If you want to try compounding several times per year:

Put the number of times per year below the 5%, as quarterly; 4 times per year

Then change the formula to:

=B4*(1+(A$1/A$2))^(A4*A$2)

You can then test for 2 times per year, 4 times per year or 12 times per year.

If dividends are being reinvested, then this may be somewhat more realistic, but this is not a real compounding situation, so any calculation is only a projection...

If you compound weekly, 52 times per year, then at 5% you would have Y50M.
That is the equivalent of 5.1215% compounded once per year...

[Roger Van Zant]

Yeah, something not quite right, but I can't see your formiulae. Maybe there is not a $ sign in the right place so the cells are not anchored properly

You might add one more row at the bottom for 0 years remaining...

In Cell C4 put this formula

=B4*(1+A$1)^A4

Then swipe and fill that down to the bottom

Then select that column and copy / paste it to Column I, and again to Column O

What do you get now?

Without the last year 0, I make it

18,720,000 37,534,693 NISA 3,168,000 5,821,988 iDECO 2,640,231 4,852,004 Piece Of Shit Company DB Plan


Total 48,208,685


With the last year 0, I make it

19,440,000 38,254,693 NISA 3,312,000 5,965,988 iDECO 2,760,253 4,972,026 Piece Of Shit Company DB Plan


Total 49,192,707


At 8%, 75,576,713

Let me try your advice when I return to the office next Wednesday. Thanks again. Your numbers look a bit more optimistic!

[Tkydon]

Let me try your advice when I return to the office next Wednesday. Thanks again. Your numbers look a bit more optimistic!

So basically, ever year's contribution is multiplied by 1+5% (the percentage at the top) n times over, where n is the number of years that that year's contribution will remain invested (the number in the left column)

If you want to make monthly contributions, that will again change the calculation for the better



1 to 12 for year 1
13 to 24 for year 2
to
252 to 264 for year 22
...


Insert a new Column A

In Column A start with 0 for the current month, 1, 2, 3 and so on down to some large number like 264 for 22 years, 300 for 25 years, or 480 for 40 years

The make B$2 the number of years you want to calculate for, say 25.

Then make Column B

=max(B$2*12-$A4,0)

and fill that all the way down

It will count down to 0 at 25 years and then stay at 0. Don't put any more contributions in Column C after it gets to 0...

Then in Column C put the monthly contribution for each month
You can leave blank months, or increase the value in a bonus month, etc...

Sum at the bottom, or at the top (probably easier to see if you Freeze Panes at the top 3 rows...)

Copy Columns B, C and D to the other Columns for iDECO and Company DB

Now, every contribution grows monthly, and you can shorten or lengthen the time until you decide to retire.

[Roger Van Zant]

I couldn't figure out the whole Excel thing.
Thank you for your help nonetheless.
In the end, I used this website:

https://www.thecalculatorsite.com/compo ... =5&di=&wi=

1) Start with 3.6m yen (will max out New NISA in January 2024 with a lump sum)
2) Pay in 50,000 yen per month thereafter, starting in 2025 (2024 already maxed out ), so 600,000 yen per year from 2025 to 2045.

Interest rate of 3%.
I chose "yearly" for the interest (no idea how the NISA calculates it)
Came out to 22,969,818 yen after twenty years.

Does that look right?

[northSaver]

I get 23.11 million using moneychimp's compound interest calculator, so yes, there or thereabouts. This assumes 20 years of payments after 2024's lump sum payment, so the last payment is Dec 2064.

3% seems pretty conservative over 21 years, by the way. But with the yen as weak as it is now, who knows what we'll get in yen terms? Also, you might be able to contribute more then 50k per month in the future due to salary increases or whatever. So I would say that 23 million is the least you will get

[Roger Van Zant]

3% seems pretty conservative over 21 years, by the way. But with the yen as weak as it is now, who knows what we'll get in yen terms?

I don't really understand how the yen being weak or strong will affect this?
I will be earning yen, saving yen, and come retirement, withdrawing yen.
I don't plan on converting anything to a different currency....

[Beaglehound]

3% seems pretty conservative over 21 years, by the way. But with the yen as weak as it is now, who knows what we'll get in yen terms?

I don't really understand how the yen being weak or strong will affect this?
I will be earning yen, saving yen, and come retirement, withdrawing yen.
I don't plan on converting anything to a different currency....

As soon as you buy anything that isn’t Japanese (e.g. Japanese stocks, bonds etc), you are in effect converting your yen to the currency of the underlying asset. Then the process in reverse when you sell. So currency movements are very much relevant, even if your investments are only visible to you in yen terms.

[Roger Van Zant]

How are Japanese stocks and bonds not Japanese?

[zeroshiki]

eMaxis Slim buys world stocks, a weak yen will affect the number that can be purchased since they will be denominated in other currencies.