|Savings plan inputs:|
Press spacebar to hide inputs
|Savings Plan by Year|
press spacebar to hide graph
The amount you wish to have in savings at the end of this savings plan.
The number of years you have to save.
Total you currently have saved toward this savings goal.
The amount you will contribute each month to your investments. This calculator also assumes that you make your contribution at the beginning of each month.
This is the annually compounded rate of return you expect from your savings or investment. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2017, had an annual compounded rate of return of 8.3%, including reinvestment of dividends. From January 1, 1970 to December 31st 2017, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.6% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return examples do not reflect sales charges and other fees that investment funds and/or investment companies may charge.
This is what you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI). From 1925 through 2017 the CPI has a long-term average of 2.9% annually. Over the last 40 years highest CPI recorded was 13.5% in 1980. For 2017, the last full year available, the CPI was 2.0% annually as reported by the Minneapolis Federal Reserve.
Sunmark Federal Credit Union
1187 Troy Schenectady Road