Definitions
- Years
- The number of years you expect wish to analyize. This can be any number from one to one hundred.
- Rate of return
- Pre-tax rate of return on your investments. For example, the long-term rate of return for the S&P 500 is about 11%. A savings account earns 2% to 5%.
- Initial investment
- Total you currently have invested that should be included in this analysis.
- Inflation rate
- What you expect for the average long-term inflation rate.
- Annual investments
- The amount you will contribute each year to your investments. If you check the box to adjust this amount for inflation, your annual investment will increase each year by the inflation rate.
- Tax rate
- The percentage of your investment return you will pay in taxes. Your taxes are assumed to be paid annually, at the end of the year.
- Compounded interest return
- Total after tax return if your return is compounded annually.
- Simple interest return
- Total after tax return if your return is simple interest with no compounding.
- Total invested capital
- Total you have invested. This includes your initial investment and all periodic investments.
- Investment final total
- Your investments total ending value. If you have checked the box to show values after inflation, this amount it the total value of your investment in today's dollars. If this box is uncheck, it will show the actual value of the investment.
|
