BIRMANBOY
31-08-2015, 08:47 PM
So after reading various opinions and recognising fears that many people have about being able to fund their retirement, below is an illustration of how its not as hard as it may seem to accumulate a million for retirement. Starting with a 10,000 base payment and contributing 800 per month into a good conservative range of solid dividend producers and leaving the dividends to be re-invested whenever possible. Working with a reasonable return average of 5.5% and starting at 30 years of age by the time you hit 65 you should be able to access 56,000 odd in interest per year. Obvious wot ifs..are
Negative....super age will no doubt be out past 65 by then
You have to be focussed on regular contributions regardless of other "temptations"
Inflation will no doubt have eaten away some of the "purchasing power " of your funds.
Positive.....You should be able to increase the monthly $800 considerably as your earning capacity increases
You should find that % returns increase the longer you hold stocks
Good chance there will be considerable capital gain over that long of a period
So I see this as a very conservative result..it could well be considerably more.
(interest compounded half yearly - added at the end of each six month period)
Year
Year Deposits
Year Interest
Total Deposits
Total Interest
Balance
1
$9,600.00
$845.09
$19,600.00
$845.09
$20,445.09
2
$9,600.00
$1,427.47
$29,200.00
$2,272.56
$31,472.56
3
$9,600.00
$2,042.32
$38,800.00
$4,314.88
$43,114.88
4
$9,600.00
$2,691.45
$48,400.00
$7,006.34
$55,406.34
5
$9,600.00
$3,376.78
$58,000.00
$10,383.12
$68,383.12
6
$9,600.00
$4,100.32
$67,600.00
$14,483.43
$82,083.43
7
$9,600.00
$4,864.19
$77,200.00
$19,347.63
$96,547.63
8
$9,600.00
$5,670.66
$86,800.00
$25,018.29
$111,818.29
9
$9,600.00
$6,522.10
$96,400.00
$31,540.39
$127,940.39
10
$9,600.00
$7,421.01
$106,000.00
$38,961.39
$144,961.39
11
$9,600.00
$8,370.03
$115,600.00
$47,331.42
$162,931.42
12
$9,600.00
$9,371.97
$125,200.00
$56,703.40
$181,903.40
13
$9,600.00
$10,429.78
$134,800.00
$67,133.18
$201,933.18
14
$9,600.00
$11,546.57
$144,400.00
$78,679.75
$223,079.75
15
$9,600.00
$12,725.62
$154,000.00
$91,405.36
$245,405.36
16
$9,600.00
$13,970.41
$163,600.00
$105,375.78
$268,975.78
17
$9,600.00
$15,284.61
$173,200.00
$120,660.39
$293,860.39
18
$9,600.00
$16,672.08
$182,800.00
$137,332.47
$320,132.47
19
$9,600.00
$18,136.92
$192,400.00
$155,469.38
$347,869.38
20
$9,600.00
$19,683.42
$202,000.00
$175,152.81
$377,152.81
21
$9,600.00
$21,316.16
$211,600.00
$196,468.96
$408,068.96
22
$9,600.00
$23,039.92
$221,200.00
$219,508.89
$440,708.89
23
$9,600.00
$24,859.80
$230,800.00
$244,368.69
$475,168.69
24
$9,600.00
$26,781.15
$240,400.00
$271,149.84
$511,549.84
25
$9,600.00
$28,809.63
$250,000.00
$299,959.47
$549,959.47
26
$9,600.00
$30,951.21
$259,600.00
$330,910.68
$590,510.68
27
$9,600.00
$33,212.19
$269,200.00
$364,122.87
$633,322.87
28
$9,600.00
$35,599.24
$278,800.00
$399,722.11
$678,522.11
29
$9,600.00
$38,119.38
$288,400.00
$437,841.49
$726,241.49
30
$9,600.00
$40,780.03
$298,000.00
$478,621.52
$776,621.52
31
$9,600.00
$43,589.03
$307,600.00
$522,210.55
$829,810.55
32
$9,600.00
$46,554.65
$317,200.00
$568,765.21
$885,965.21
33
$9,600.00
$49,685.63
$326,800.00
$618,450.83
$945,250.83
34
$9,600.00
$52,991.17
$336,400.00
$671,442.00
$1,007,842.00
35
$9,600.00
$56,481.02
$346,000.00
$727,923.02
$1,073,923.02
Negative....super age will no doubt be out past 65 by then
You have to be focussed on regular contributions regardless of other "temptations"
Inflation will no doubt have eaten away some of the "purchasing power " of your funds.
Positive.....You should be able to increase the monthly $800 considerably as your earning capacity increases
You should find that % returns increase the longer you hold stocks
Good chance there will be considerable capital gain over that long of a period
So I see this as a very conservative result..it could well be considerably more.
(interest compounded half yearly - added at the end of each six month period)
Year
Year Deposits
Year Interest
Total Deposits
Total Interest
Balance
1
$9,600.00
$845.09
$19,600.00
$845.09
$20,445.09
2
$9,600.00
$1,427.47
$29,200.00
$2,272.56
$31,472.56
3
$9,600.00
$2,042.32
$38,800.00
$4,314.88
$43,114.88
4
$9,600.00
$2,691.45
$48,400.00
$7,006.34
$55,406.34
5
$9,600.00
$3,376.78
$58,000.00
$10,383.12
$68,383.12
6
$9,600.00
$4,100.32
$67,600.00
$14,483.43
$82,083.43
7
$9,600.00
$4,864.19
$77,200.00
$19,347.63
$96,547.63
8
$9,600.00
$5,670.66
$86,800.00
$25,018.29
$111,818.29
9
$9,600.00
$6,522.10
$96,400.00
$31,540.39
$127,940.39
10
$9,600.00
$7,421.01
$106,000.00
$38,961.39
$144,961.39
11
$9,600.00
$8,370.03
$115,600.00
$47,331.42
$162,931.42
12
$9,600.00
$9,371.97
$125,200.00
$56,703.40
$181,903.40
13
$9,600.00
$10,429.78
$134,800.00
$67,133.18
$201,933.18
14
$9,600.00
$11,546.57
$144,400.00
$78,679.75
$223,079.75
15
$9,600.00
$12,725.62
$154,000.00
$91,405.36
$245,405.36
16
$9,600.00
$13,970.41
$163,600.00
$105,375.78
$268,975.78
17
$9,600.00
$15,284.61
$173,200.00
$120,660.39
$293,860.39
18
$9,600.00
$16,672.08
$182,800.00
$137,332.47
$320,132.47
19
$9,600.00
$18,136.92
$192,400.00
$155,469.38
$347,869.38
20
$9,600.00
$19,683.42
$202,000.00
$175,152.81
$377,152.81
21
$9,600.00
$21,316.16
$211,600.00
$196,468.96
$408,068.96
22
$9,600.00
$23,039.92
$221,200.00
$219,508.89
$440,708.89
23
$9,600.00
$24,859.80
$230,800.00
$244,368.69
$475,168.69
24
$9,600.00
$26,781.15
$240,400.00
$271,149.84
$511,549.84
25
$9,600.00
$28,809.63
$250,000.00
$299,959.47
$549,959.47
26
$9,600.00
$30,951.21
$259,600.00
$330,910.68
$590,510.68
27
$9,600.00
$33,212.19
$269,200.00
$364,122.87
$633,322.87
28
$9,600.00
$35,599.24
$278,800.00
$399,722.11
$678,522.11
29
$9,600.00
$38,119.38
$288,400.00
$437,841.49
$726,241.49
30
$9,600.00
$40,780.03
$298,000.00
$478,621.52
$776,621.52
31
$9,600.00
$43,589.03
$307,600.00
$522,210.55
$829,810.55
32
$9,600.00
$46,554.65
$317,200.00
$568,765.21
$885,965.21
33
$9,600.00
$49,685.63
$326,800.00
$618,450.83
$945,250.83
34
$9,600.00
$52,991.17
$336,400.00
$671,442.00
$1,007,842.00
35
$9,600.00
$56,481.02
$346,000.00
$727,923.02
$1,073,923.02