Retirement Analysis
I chose the option of starting to save for retirement now. This is because I would end up paying less in the long term and receiving the most money because of a monthly compounded interest.
|
Plan 1 (start in 20 years) |
Plan 2 (start in 10 years) |
Plan 3 (start now) |
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|
Monthly contributions |
$ 1,200.00 |
$ 800.00 |
$ 400.00 |
||
|
Time Period (years until retirement) |
15 |
25 |
35 |
||
|
Rate |
9.00% |
9.00% |
9.00% |
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|
Future Value of Retirement Fund |
$457,492.57 |
$903,624.28 |
$1,185,539.14 |
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|
Total Contributions made |
$ 216,000.00 |
$ 240,000.00 |
$ 168,000.00 |
As you can see, the $168,000 appreciates to over a million dollars. It should also be noted that I would only be paying $400/month compared to double that, or triple, if I were to wait.