This always seemed so complicated. It was almost like you were never supposed to understand this. Its actually super simple and this should be taught more commonly.
Don't you think we should also consider inflation for the pmt it is not going to be 147679 for the next 25 years that amount should increase as well with inflation
Awesome information and new subscriber. Quick question - how do I incorporate the current value of my 401k to then calculate how much more I need to save to get to the retirement end goal amount by the time I retire? Basically adding “currently saved retirement fund” and calculate the remaining amount needed to get to the end goal. Hope I made sense. -D
Great question! You can subtract your current 401k value from the "Amount needed when we retire (FV)" which is on cell B12 in the video. That will give you a rough recalculation of the amount needed to save each month. It wont be super accurate, but I am working on a more detailed retirement model where you can add an existing 401k more easily. Watch for that video coming out in the upcoming weeks.
I have been playing around adding it in. With your original numbers such as 55,000 starting, 7 years to retirement, generating a 1.13 million starting balance, and adding in just a social security payment of 1200 growing 1.5 percent a year it takes almost 30 years to exhaust the 1.13million earning 9% a year
@@shawnstangeland3011 Not bad at all! Compounding interest is crazy powerful. That's why the earlier you save the more exponential your returns become.
Wow this is awesome! Quick question, is there an easy way to calculate your current rate of return on investment if you have multiple investments? So, for example, if one investment is yielding 8% and another is yielding 6% etc.?
Yes you can find that pretty easily in Excel. If you want to know how much something will yield in the future, use the =FV function. You just need to know rate, number of periods, and the current value. You can also solve for any of those variables as well. I have two videos about this that will answer your question in depth. The time value of money and the time value of money practice problems videos on the channel.
If I talk to slow speed it up to 1.5x speed!
Easy to understand and full of important information. Everyone needs to watch this video!
Thank you!
Thanks for this video!! This stuff is easy to forget
Its good to stay up to date!
This was very helpful, thank you.
Happy to hear that. Thanks for the support!
This always seemed so complicated. It was almost like you were never supposed to understand this. Its actually super simple and this should be taught more commonly.
I whole heartedly agree!
Wow this makes me want to retire now haha thanks!!
Hopefully you can one day!
Don't you think we should also consider inflation for the pmt it is not going to be 147679 for the next 25 years that amount should increase as well with inflation
maybe a stupid question Calon, does this calculation make provision for monthly contribution increase on an annual basis perhaps?,
Awesome information and new subscriber. Quick question - how do I incorporate the current value of my 401k to then calculate how much more I need to save to get to the retirement end goal amount by the time I retire?
Basically adding “currently saved retirement fund” and calculate the remaining amount needed to get to the end goal. Hope I made sense.
-D
Great question! You can subtract your current 401k value from the "Amount needed when we retire (FV)" which is on cell B12 in the video. That will give you a rough recalculation of the amount needed to save each month. It wont be super accurate, but I am working on a more detailed retirement model where you can add an existing 401k more easily. Watch for that video coming out in the upcoming weeks.
Time for another adding current savings/investments, social security payments, and va payments
That would be helpful! Will start working on one for a future video
I agree that would be cool to add
@@jaredhicks4994 Hopefully I can get something like that created for you all in the future.
I have been playing around adding it in. With your original numbers such as 55,000 starting, 7 years to retirement, generating a 1.13 million starting balance, and adding in just a social security payment of 1200 growing 1.5 percent a year it takes almost 30 years to exhaust the 1.13million earning 9% a year
@@shawnstangeland3011 Not bad at all! Compounding interest is crazy powerful. That's why the earlier you save the more exponential your returns become.
Wow this is awesome! Quick question, is there an easy way to calculate your current rate of return on investment if you have multiple investments? So, for example, if one investment is yielding 8% and another is yielding 6% etc.?
Yes you can find that pretty easily in Excel. If you want to know how much something will yield in the future, use the =FV function. You just need to know rate, number of periods, and the current value. You can also solve for any of those variables as well. I have two videos about this that will answer your question in depth. The time value of money and the time value of money practice problems videos on the channel.
@@CalonHeindel okay great! I’ll def check out those other videos! Thank you again!
@@ngee4925 No problem!
9:19 - you mean each month right?
If you're referencing the $55,000 that would annually