Question

i have a retirement account. i want to calculate how much i will have in it when i retire. whats the best way to do that?

Answer 1

Value after n years= A [ {(1+r)^n -1}/r]
A- the amount you're setting aside per year
r- rate of interest you're getting
n- no. of years

Answer 2

thanks

Answer 3

is the rate of interest an annual number? or compunded or what?

Answer 4

It will depend upon your retirement plan. It is usually annual. However, if it is compounding then, the value of n will change. For example, if the plan is compounding 2 times a year (half-yearly compounding) then the the value of n will 2*(no. of years).

Answer 5

hmm... its just a roth ira where my money goes into the stock market and is managed by the brokerage. i dont know how to calculate the percentage. i have put 2800 in it so far and it is up to 3200

Answer 6

its been about 7 months by the way

Answer 7

I don't live in US so have little idea about the roth IRA. However, i think this might help you out -> http://www.rothira.com/tools/calculator/

Answer 8

do you know the approximate rate of interest you'll be earning?

Answer 9

not really. its in the stock market so it varies. usually the standard to expect is 7-8%

Answer 10

using the formula i stated before, you can get an approximate idea. For instance, if you put in 3000 in the begining of every year for 10 years, you'll get
= 3000 [ (1.08^10 -1)/0.08] = 43459.6 after 10 years