RULE of 72 / Retirement Summary / Retirement Goals / Retirement Detail by Year

Rule of 72

The Rule of 72 is a quick, useful formula used to estimate the number of years required to double your investment at a given annual rate of return.
My annualized rate of return since 2004 has been 12.40%. So if my portfolio balance was $311,000 on January 1st, 2004, below are what my Portfolio Balances would have been at the end of 2014 and 2024, respectively:

01/01/2004 - $311,000

12/31/2014 - $1,000,975.62

12/31/2024 - $3,221,711.25

As long as your account earns a consistant return, your portfolio balance will begin increasing quicker in value once it passes $100,000.

Retirement Summary

Some things to keep in mind when looking at the below table:

You're starting with no savings.
The three tables show the results if your investments earn 6%, 8%, and 12.40% annually.
Beginning age of investing is 25 years old increasing by 5 years until age 50.
You plan to retire at age 65.
The numbers below do not include pay raises, inflation, or unexpected events involving to money.

The third table reflects AmerKorAsian's Annualized Investment returns since 2004 and how much is needed invested every month by age to reach $1,000,000 by the retirement age of 65 years old.

If you increased your monthly investment amount by $100 when you're 25 or 30 years old, your retirement balance at age 65 would be
$2,699,445.61 and $2,171,667.60 respectively.

The last column on the left shows what your age would be if you invested $100 per month at 6% or 8% and wanted to retire at the age of 65 years old.

The earlier you begin investing for retirement, the sooner you can take advantage of compounding. Compounding is returns on the money you invest and returns on your returns.

Numbers if you make $45,000 per year:

Some things to keep in mind when looking at the below table:

The higher the investment return you can achieve each year, the less you will need to contribute to reach a retirement balance at age 65 of $1,000,000.

If you're 50 years old with nothing invested and can earn 12.40% annually in investment returns, you would need to increase your yearly contribution by 5% to 50.84%, in order to have $1,000,000 in your account when you turn 65 years old.

The earlier you begin investing for retirement, the sooner you can take advantage of compounding. Compounding is returns on the money you invest and returns on your returns.

How much you need to invest monthly to reach $1,000,000 by retirement age of 65 years old.

Retirement Detail by Year

All cells shaded Yellow can be edited.

Make smaller goals with balance milestones to not overwhelm yourself because the account balance isn't increasing fast enough.

Here is how I set-up my own personal milestones (Monthly Invest $100 per month):
First milestone - $1,000 Account balance
Second milestone - $10,000 Account balance
Third milestone - $50,000 Account balance
Fourth milestone - $100,000 Account balance
Fifth milestone - $311,000 Account balance

Once my account balance was $311,000, I knew as long as my annual return was 12.40%, I would hit $1,000,000 in my account in 10 years.

As long as your account earns a consistant return, your portfolio balance will begin increasing quicker in value once it passes $100,000.

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