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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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
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.