calculator.

[Bubblegun]

So I wanted to see how much money my kids could save/ my myself included, and run a few scenarios through a calculator.

One point was to see how long it would take for the interest level to actually start to roll over and start outstrip the money I was actually depositing, and to see how little I could save for my kids future. With a return of the S&P making annual returns of 7% (1950 ~2009).Higher if you go back further in time.
Anyway I thought it would also be useful to see, how much it might provide at the end of the term, and then to draw down from that total amount and see how many years it could last. Say retire at 60 years old and draw down a monthly income.
The chart basically showed that my kids money would run out at 87 years old if they retired at 60.

When I see all the brochures and charts/ info it can at times be a bit simple, or provides too much info but I thought this calculator was visually better for me, as I can actually see how compound may work in yen/dollars/pounds/ and see how after i retire what will happen to that money once we start to draw down on it.


Ofcourse no calculator is perfect and If there is a better calculator I'd be happy if you could point me in the right direction, but this one appeared useful as a starting point for my savings.
I hope it helps too. If not please feel free to delete this post.
You can choose dollars, pounds, yen, or euros.
https://www.thecalculatorsite.com/finan ... ulator.php

[RetireJapan]

A good exercise, and if it helps build a saving/investing habit, all the better. I'm hoping my granddaughter won't actually touch her Junior NISA until she retires. All things being equal, and barring major changes to the world, she should be fairly wealthy at that point

[ichiokuen]

Thanks for sharing. Always good to have some kind of estimate. I can't believe you guys already have enough saved for your kids and their kid's retirements! I am still trying to figure out how much my wife and I will have to save for just ourselves.

[adamu]

7%

I don't have a specific source to hand right now, but I've seen / read in a few places that although that's the historical rate, for future predictions using 3% may be more realistic (including by John Bogle). At least it's better to be conservative and reach your target early than be optimistic and end up miles off!

[Bubblegun]

7%

I don't have a specific source to hand right now, but I've seen / read in a few places that although that's the historical rate, for future predictions using 3% may be more realistic (including by John Bogle). At least it's better to be conservative and reach your target early than be optimistic and end up miles off!

I have to agree with you on that.
I think when companies try to use sell something they appear to use the figures and people that make things look much more Rosy.
I really wanted to chat to the young person last week who was getting financial advice in a coffee shop, and the person selling appeared a bit....inappropriately dressed and rather overly flirtatious.

It seems we not only have to be financially aware but also psychologically aware of how companies can try to sell stuff to young people who may just think they are being nice.
http://images2.moneysavingexpert.com/at ... 1562041260

I especially like his final comment.
You need skills and tactics to be a top consumer; common sense isn’t enough.

[ricardo]

The stock market will always go up over time, over decades...

The question is whether you can beat inflation, and then that becomes country-specific.

For example, I have a final salary pension fund growing in the UK which is index-linked to inflation. This year it grew by 2.4%. Good in Japan but bad in some other places..

[Bubblegun]

The stock market will always go up over time, over decades...

The question is whether you can beat inflation, and then that becomes country-specific.

For example, I have a final salary pension fund growing in the UK which is index-linked to inflation. This year it grew by 2.4%. Good in Japan but bad in some other places..

Absolutely! Infact I ran 500,000 yen lump sum plus 15,000 per month, growing at 3% per annum,2% inflation(cough cough) and I found especially with the 20 million yen shortfall they are going on about last week, they will have to start saving for 45 years to get 26 million yen. Not a lot really! Basically as soon as they get a job, and they'll have to work all the way up to retirement.....which i am sure will be increased down the line.

[captainspoke]

...
https://www.thecalculatorsite.com/finan ... ulator.php

Interesting to play with that, but I never thought of savings as "monthly". Usually, money would accumulate in one place, and after some months (and possibly a bonus) I'd move it to one or another separate account.

And keeping track of saving then and spending now, I'm more of a back-of-an-envelope kind of guy, using a calculator only to check what I've ballparked already.

For a simple calculator, try this one.

***

Especially after the run-up of these last ten years, my personal view is that 7% going forward is unrealistic. I use 5%, and if I want to throw caution out the window, I use 6.

***

The stock market will always go up over time, over decades...

Cf, Japan!

[RetireJapan]

I work off 4%, but that is a result of my pessimistic and overcautious personality

[Bubblegun]

I work off 4%, but that is a result of my pessimistic and overcautious personality

I totally get that. I'm rather like that myself.
My vanguard account appears to be running at about 4.7% per annum, but i'm sure once the market takes a turn for the worse that might slow down.But it will certainly give me a good reason to keep dropping in some money every month, in the hope they'll by cheap, and get the returns on the upswing and the dividends.( oh the usual stock buy backs) which just seems like scam to me.