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This simulation calculates compound interest only. It does not attempt to calculate or predict inflation, taxes, pensions, government programs, or any other costs, benefits, or risks. With that in mind:
- You can consider the interest rate to be adjusted for inflation, and all dollar amounts to be valued in today's dollars.
- Assume that Monthly Contribution amounts are after taxes and Monthly Withdraw amounts are before taxes.
- If you expect to receive money from pension plans, add the expected monthly income to your Monthly Withdraw amount.
- Performance of the stock market varies considerably depending on the time period studied. After adjusting for inflation and dividends, some decades have had negative returns and other decades have returned as high as 16% per year [citation]. Longer time frames have been somewhat more stable. From 1871 to 2011, all 30-year periods of the stock market have returned at least 3.2% annualized interest. The average annualized 30-year return was 6.6%. [citation]
- For more information about investing and market histories, check out the articles and calculators at Moneychimp.
