Savings Calculator
Consistent investments
over a number or years can be an effective strategy to accumulate
wealth. Even small additions to your savings add up over time. This
calculator demonstrates how to put this savings strategy to work for
you!
Definitions
Starting amount
The starting balance
or current amount you have invested or saved.
Additional contributions
The amount that you
plan on adding to your savings or investment each period.
The investment period options include monthly, quarterly and
annually.
Years
The total number of
years you are planning to save or invest.
Rate of return
The annual rate of
return for this investment or savings account. Historically
the major stock indexes have averaged 11% to 12% per year.
If you plan on withdrawing your money within five years, you
may wish to choose a more conservative rate of return.
Compound interest
This is the frequency
that your investment's interest or income is added to your
account. The more frequently this occurs, the sooner your
accumulated interest income will generate additional interest.
For stock and mutual fund investments you should choose 'Annual'.
For savings accounts and CDs all of the options are valid,
although you will need to check with your financial institution
to find out how often interest is being compounded on your
particular investment.
Information and interactive calculators are made available to you as self-help tools for your independent use. We cannot and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from our Financial Consultants regarding all personal finance issues.
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