How does the goal calculator work backwards?
Four quantities, three of them yours to turn. The contribution is what follows.
The goal calculator turns the projection around. Instead of asking what comes out, it asks what has to go in every month for a target amount to be reached.
Three levers lead to it: more years, a higher assumed return, or a larger initial investment. Time usually does more than it looks, because it works on every contribution.
| Lever | Needed per month | Changes the contribution by |
|---|---|---|
| Investment period (years): 20 years | US$120.11 | -US$111.33 |
| Annual return: 9.0 % | US$172.16 | -US$59.28 |
| Initial investment: US$15,000 | US$187.35 | -US$44.09 |
How to read this in the simulator
The goal calculator sits at the bottom of the calculator and takes the initial investment, the return and the period from the fields above. Only the contribution is computed.
What the figure does not say
The figure holds before costs and taxes and in future money, not in today's purchasing power. It assumes the same return in every year, which is an arithmetic quantity and not a promise.
Education, not advice. Disclaimer