Forum Archive Index - February 2003

["Malcolm Cameron" <malharcameron@hotmail.com>]

Bill do the same thing for wages say using 3.5% and or cost of living and 
you might have an ideah how long this will last you. You will be supprised 
how short a period this will last. Also you forgot to allow for tax or did 
you think the return rate would be a gross of over 13%. These calculations 
are over simplification of a complex problem.
Malcolm







>From: prhughes@value.net.nz
>Reply-To: sharechat@sharechat.co.nz
>To: sharechat@sharechat.co.nz
>Subject: [sharechat] Financial Planning for Free
>Date: Wed, 26 Feb 2003 10:50:46 +1300
>
>Hi
>
>I was bemused by all the noise about financial planning a short
>while ago. Perhaps the following may be of interest to you, as old
>as the hills,and something you can do at no cost to youself. If you
>use Govt Stock it is probably the safest investment you will find.
>
>Preparing for retirement .....from age 19 for a total cost of $14,000
>for a return of $930,644. The secret...compounding interest.
>
>For simplicity a rate of 10% per annum is used.
>
>Age            Contribution    Year End Value
>19                     2000                    2200
>20                     2000                    4620
>21                     2000                    7282
>22                     2000                    10210
>23                     2000                    13431
>24                     2000                    16974
>25                     2000                    20872
>26                     0                               22959
>27                     0                               25255
>28                     0                               27780
>65                     0                               944641
>Less Invested                          (14000)
>Equals                                         $930,641
>
>After seven years makes no more contributions.
>
>He who understands interest..........Earns it
>
>He who doesn't understand interest........Pays it
>
>Bill
>
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