DYI: Developed by Fidelity Investments, they adjust for the 4 percent average inflation rate projected by the Social Security Administration and assume you’ll earn 8 percent a year on your savings.
5 years: .184
10 years: .083
15 years: .050
20 years: .034
25 years: .024
30 years: .018
Example: If you plan to stop working twenty years from now, in order to accumulate $250,000 dollars, you’d need to save $8,500 every year (.034 x $250,000) in today’s dollars for the next two decades.
How much will you need to save over 30 years to accumulate one million dollars? $18,000 per year or $1,500 per month, obviously a difficult task especially those at the lower income range.
Nevertheless, an easy tool for savings/retirement planning.
ENJOY
DYI
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