Compound interest/401k question

[UntilTheNDofTimE]

My current employer matches 50% up to 6%.

Is There a way to calculate the total over say 35 years without doing it all on paper?

i will be contributing approximately $2000 a year(including the match)

Lets assume i make 8% a year for 35 years. What will the future value be?

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

I used this calculator and got 334,983

Is this correct?

[UntilTheNDofTimE]

anyone?

[DrunkHorseplayer]

That total sounds about right; regardless, 2k/yr for 35 years at 8% every year adds up to a huge sum. Be advised, though, that 8%/yr for that long is ridiculously optimistic.

[UntilTheNDofTimE]

That total sounds about right; regardless, 2k/yr for 35 years at 8% every year adds up to a huge sum. Be advised, though, that 8%/yr for that long is ridiculously optimistic.

Im not assuming that is what ill make, but i was fluctuating the interest amount a few percent and it made such a drastic change that i wasnt sure if i was entering the correct info. 335k off of 70k seems like alot even at 8% interest.

Id say making 4-5% right now with the market is pretty damn good.

[Blax0r]

I get about the same value as you; the large difference in future value is due to compounding and 35 years (small difference in the initial interest rate will add up huge).

[harlee71]

Same here. About $360k. Your not taking into consideration though that your salary will increase over the years therefore your contributions will increase. This will drastically increase your nest egg.

[teecee]

you should be able to access your account online, and they will have calculators you can use to find the answer.

[jwbama23]

That total sounds about right; regardless, 2k/yr for 35 years at 8% every year adds up to a huge sum. Be advised, though, that 8%/yr for that long is ridiculously optimistic.

8% is not overly optimistic. If you understood the markets most decent mutual funds over a 35 year period will average closer to 10-12%. You just have to know where to put your money in your 401k. Problem is most people see the market go down and they move all of their money to something conservative instead of continuing to buy shares at a cheaper price. Im not gonna name funds because it would be illegal with my license to offer this type of advice online but with a little bit of research you could find tons of mutual funds that even through bad times have maintained an average of 10-12%.

[Brock Landers]

401k's are fukkin great. They're there to assist at all times

[teecee]

8% is not overly optimistic. If you understood the markets most decent mutual funds over a 35 year period will average closer to 10-12%. You just have to know where to put your money in your 401k. Problem is most people see the market go down and they move all of their money to something conservative instead of continuing to buy shares at a cheaper price. Im not gonna name funds because it would be illegal with my license to offer this type of advice online but with a little bit of research you could find tons of mutual funds that even through bad times have maintained an average of 10-12%.

i don't get to pick and choose whatever fund i want. they offer a list, and i get to choose from that list. none of the funds offered have earned 10-12% for the life of the fund. most offered haven't even been around 10 yrs, let alone 35. the offerings are pretty lame to say the least, but i do what i can to make a profit.

[SBR_John]

8% is not overly optimistic. If you understood the markets most decent mutual funds over a 35 year period will average closer to 10-12%. You just have to know where to put your money in your 401k. Problem is most people see the market go down and they move all of their money to something conservative instead of continuing to buy shares at a cheaper price. Im not gonna name funds because it would be illegal with my license to offer this type of advice online but with a little bit of research you could find tons of mutual funds that even through bad times have maintained an average of 10-12%.

He might not have most investment options open. I would be careful to plan on 10-12%. In fact, I would use 7%. I like 7% because you can be sure of that and plan around it.

[pavyracer]

All it takes is a bad year of -30% to put you back to square one. In fact if the -30% year happens close to retirement you are in some deep doodoo.

[jwbama23]

i don't get to pick and choose whatever fund i want. they offer a list, and i get to choose from that list. none of the funds offered have earned 10-12% for the life of the fund. most offered haven't even been around 10 yrs, let alone 35. the offerings are pretty lame to say the least, but i do what i can to make a profit.

And I see this more often than not. My gf works for a major corporation and her 401k options are a joke.

SBR John, curious as to why you feel 7% is a good target?

[DrunkHorseplayer]

8% is not overly optimistic. If you understood the markets most decent mutual funds over a 35 year period will average closer to 10-12%. You just have to know where to put your money in your 401k. Problem is most people see the market go down and they move all of their money to something conservative instead of continuing to buy shares at a cheaper price. Im not gonna name funds because it would be illegal with my license to offer this type of advice online but with a little bit of research you could find tons of mutual funds that even through bad times have maintained an average of 10-12%.

Why don't you post links where I can research this info? It can't be against the law for you to post public information, can it? 10-12% a year for 35 years? I think you're full of shit.

[jwbama23]

Why don't you post links where I can research this info? It can't be against the law for you to post public information, can it? 10-12% a year for 35 years? I think you're full of shit.

It could be considered a solicitation. If you want to do the research why should I post a link? sounds like you want the info given to you. I dont care whether you believe me or not. Im obviously not here to gain clients and especially not some dumb ass like yourself