Value Investing combined with advanced math algorithms

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“Pure mathematics is, in its way,  the poetry of logical ideas”.... Albert Einstein

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Advanced Math InvestingSend email

How do I reach my 1 million?

Reaching your retirement goal

Why the 1 million goal?

Here’s the math:

1.  Retire at 67 with $1,000,000 saved.

2. Assume you’ll live another 15 years (82)

3.  Divide 1 million by 15 you get $66,666  That’s your income.

4.  Assuming your working income was 100,000… you’ll live at the same level.  (Add social security, minus no home mortgage, and kids finished college)  One million should be a reasonable goal for a comfortable retirement lifestyle.

The average retirement plan should have 1 million dollars at retirement.

0

45,000

6 percent

3 percent

5 percent

625,574

+2.5 %

1,174,541

6000

55,000

6

3

5

586,596

+2.5 %

1,039,126

15,000

65,000

6

3

5

531,089

+2.5 %

886,629

27,000

75,000

6

3

5

466,850

+2.5 %

732,241

60,000

80,000

6

3

5

437,156

+2.5 %

656,908

120,000

95,000

6

3

5

472,938

+2.5 %

667,637

200,000

115,000

6

3

5

498,475

+2.5 %

646,234

Currently saved

   Salary with 3% increase

Contribution percent

Employer match percent

 Investment ROI (normal)

Amount at 67 years old

25

30

35

40

Age

45

50

55

In addition to 401k plans there are also:


  1. ROTH IRA’s  (2016 limits)  Allow you to invest after taxes which gives you tax free retirement money. It has contribution limits 5,500  (6500 if over 50 yrs.)  and income limits (single ineligible at 117,000 agi ,married ineligible at 194,000)  We recommend this.

2.  Traditional IRA’s

Allows you to invest before taxes.  No income limits.  But ROTH and IRA’s combined cannot exceed the 5,500 or 6,500 limitations

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Here’s the math: Use the following table for examples using age and savings for an average employee 401k  plan

Total  with goals reached

Goals can vary due to client  risk tolerance and market conditions. No guarantees of performance or goals are implied.

Advanced Math annual   goal is 2.5% above the  current year S&P price return

Figures used in the table are  examples, and do not reflect any current client.

  

The 2.5% goal may vary with every client.  No performance is guaranteed .

Past performance does is no guarantee of future returns.