INVESTMENTS
|
If you invested $10,000 in
a conservative investment twenty years ago with an interest rate
averaging just 5% per year, that account would be worth $27,126.40 today.
If you had the same
investment but added $500. each month, that investment would be worth
$232,643.23 today. Again, this is with a very low interest rate
of 5%.
New guys, if you invest
$1,000. on day one of your career and add $300. per month in an
investment averaging 7% per year, on the day of your retirement
(assuming a twenty-five year career) you will have $270,446.63.
A quarter of a million dollars is a nice retirement gift.
Twenty-five years of service is
a long time. For those who are disciplined and plan well, it can mean
much luxury at retirement. The key is investment.
This page is designed to
help plan your investments.
You don't have the money?
Baloney. There are always ways to find some extra money from
refinancing your mortgage to changing your work tax status.
Once you have allocated
some money, you have to decide on investment vehicles. Options
include an IRA, a Keogh Plan, a Roth IRA, a money market fund, stocks,
bonds, mutual funds, etc.
Below we have provided
some example results of investments. They should give you a good
idea of what can be accomplished. Below that, are some links to
mortgage calculators, financial calculators and other online investment tools. You can use them to research
based on your own financial situation.
|
A Look at Compound
Interest over Various Time Periods
No Periodic Contributions |
Initial
Investment |
Years |
Rate
of Return |
Without
Interest |
With
Interest |
|
$10,000. |
5 |
5% |
$1,000. |
$10,283.72 |
|
$10,000. |
10 |
5% |
$1,000. |
$10,651.10 |
|
$10,000. |
15 |
5% |
$1,000. |
$20,119.54 |
|
$10,000. |
20 |
5% |
$1,000. |
$20,726.13 |
|
$10,000. |
25 |
5% |
$1,000. |
$30,499.58 |
| Conservative
Investment |
Initial
Investment |
Bi-Weekly Deposit |
Years |
Rate
of Return |
Contribution w/o Interest |
Contribution with Interest |
|
$1,000. |
$100. |
10 |
5% |
$27,100.00 |
$35,508.24 |
|
$1,000. |
$100. |
15 |
5% |
$40,100.00 |
$60,335.84 |
|
$1,000. |
$100. |
20 |
5% |
$53,200.00 |
$92,484.76 |
|
$1,000. |
$100. |
25 |
5% |
$66,200.00 |
$133,477.58 |
| More Aggressive
Investment |
Initial
Investment |
Bi-Weekly Deposit |
Years |
Rate
of Return |
Contribution w/o Interest |
Contribution with Interest |
|
$2,500. |
$200. |
10 |
7% |
$54,700.00 |
$80,612.26 |
|
$2,500. |
$200. |
15 |
7% |
$80,700.00 |
$145,421.62 |
|
$2,500. |
$200. |
20 |
7% |
$106,900.00 |
$238,186.25 |
|
$2,500. |
$200. |
25 |
7% |
$132,900.00 |
$368,924.62 |
| Aggressive Investment |
Initial
Investment |
Bi-Weekly Deposit |
Years |
Rate
of Return |
Contribution w/o Interest |
Contribution with Interest |
|
$5,000. |
$250. |
10 |
10% |
$70,250.00 |
$125,645.53 |
|
$5,000. |
$250. |
15 |
10% |
$102,750.00 |
$249,020.03 |
|
$5,000. |
$250. |
20 |
10% |
$135,500.00 |
$454,224.56 |
|
$5,000. |
$250. |
25 |
10% |
$168,000.00 |
$790,235.95 |
| How to save One
Hundred Grand |
Initial
Investment |
Monthly
Deposit |
Rate
of Return |
Time to Reach
$100,000 |
|
$1,000 |
$250. |
5% |
19 Years |
|
$10,000 |
$250. |
5% |
17 Years |
|
$1,000 |
$500. |
5% |
12 Years |
|
$10,000 |
$500. |
5% |
11 Years |
While the numbers seem great, you
still need to do your research. Morgan Stanley, Schwab, Goldman Sachs,
TD Waterhouse, and Fidelity are some of the full-service firms.
Online you have Ameritrade, ETrade, Scott Trade,
etc. These are just some of what is out
there. The full service firms can help you decide which investments
are right for you. The online firms offer great research tools, but
the big investment decisions are up to you.
Below are some online tools that
will help you research different scenarios based on your financial ability.
We will be updating this page as we find more useful information and
resources.
Interest
Tools
I invest a lump sum in an interest-bearing account. I want to see the
numbers over the years.
I have a certain amount taken from my paycheck each week. I want to
see the numbers.
I'm thinking about refinancing my mortgage. What would my savings be
with a lower interest rate?
Related Information
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Police & Fire Mortgage Rate
Investments |
