In my personal retirement plan. Please show the work to demonstrate the compounding to this...
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In my personal retirement plan. Please show the work to demonstrate the compounding to this personal financial planning. This is all hypothetical but in this example,
Current age: 42
Annual Salary: 70,000 (3% annual salary increase every year)
Current 401k balance: 20,000 (vested)
Expected retirement age: 67
Current annual investment: 5% of salary plus additional employer match up to 5% (total of 10% annually)
Assuming rate of return: 7%
How would I calculate this to see how much would will I have in 25 years and 27 years ? Please show work and formula.
Change the rate of return to see the difference between 5% and 7% rate of return.
Considering historical returns, how should I invest my money?
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