Step 1: Enter your current age, and your desired age to retire. The difference will be the number of years used to apply savings and investment returns.
Step 2: Enter your current account size.
Step 3: Enter the monthly deposits (savings) you plan on making into this account.
Step 4: Enter the annual return you expect your investments to achieve in retirement.
Step 5: Enter the annual return volatility you expect to have in retirement.
Step 6: Enter the annual inflation and inflation volatility you expect to occur during your retirement.
Results show the expected value of your account for the 10th percentile, 25th percentile, 50th percentile, 75th percentile, and 90th percentile. 50th percentile is the average result, 90th percentile would be a great result, and 10th percentile would be a poor result. A percentile is a measure used in statistics indicating the value below which a given percentage of observations in a group of observations fall. For example, the 25th percentile is the value (or score) below which 25 percent of the observations may be found. We run 1000 test simulations (observations) per backtest on your expected values and gather percentile information from these tests.
Assumption 1: Since we are adjusting for inflation based on the above inputs, the final account balance ($), is in today's $
Assumption 2: The monthly deposit you enter is not adjusted for inflation, therefore the $ per month you contribute into your account will remain constant throughout the simulation. If you would like to adjust this value please run multiple simulations using the ending account balance as the new starting account balance.
Money Invested vs. Money Earned from Investments
$ Invested are marked as a % of the whole account value. The entire account value is composed of $ Invested and the earnings from investment of the funds. Earnings are after inflation earnings.
The Spreadsheet below can has each month and each percentile return output in it, it can be edited in Excel
Download Output Spreadsheet
A HTML Report can be downloaded below with settings and retirement savings curve information, please save file to drive before opening. This file may be shared with others or saved to your computer for future reference.
Download HTML Report
RotationInvest.com is not a registered investment advisor and does not provide professional financial or investment advice.
RotationInvest.com is a tool that produces trade signals and backtesting results according to the set of funds and rules provided for analysis. Any strategies shown including but not limited to the prebuilt strategies are only used to highlight what is possible using these tools. Results from any of RotationInvest.com or PortfolioBuilderInvest.com tool or website may not be accurate, and cannot be guaranteed to be accurate or correct.