So we’ve all heard that “if you save and invest ‘X dollars’ every year starting at ‘age Y’ you’ll be a millionaire”. How much will your retirement nest egg amount to at age 50? 60? 70? Find out in seconds through this predictive simulation calculator!
Instructions:
- Click “Run Pen” to activate the interactive Pen
- Once activated, enter your current age, starting balance, and yearly contribution
- Click “Simulate Again” for a new simulation
The assumptions are as follows:
- Rate of Return is calculated via =norm.dist(RAND(),mean,std dev) function to help simulate variability
- Annual return ranges based off normal distribution with a mean of 1.07 (7% annual gain) and .13 standard deviation (95% (+/- 2std dev) of all years will be between -19% and +33%)
- In today’s dollars, 7% real return as n approaches infinity
- n = 50 simulations
- Percentiles will create a decent inner-quartile range
If you notice errors or have any questions…
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PenneyVanderbilt 