Besides the type of investments you choose and the
rate of
return you get on those investments, another very
important factor that will determine how much money your
investments are worth when you retire is time.
Thanks to the concept of compound interest, your investment as well as the accumulated interest will continue to grow over time so that you are earning interest on your interest. The longer you leave that money alone, the more the investment and the accumulated interest will grow.
So ask yourself, how long are you investing? Do you plan to invest for the next 10 years? 20 years? 30 years? And do you anticipate needing to get to your money before your investment matures? The longer you leave the money in your investments alone, the more you will have in the long run. And remember…some investment types have penalties attached if you touch your money before the investment matures.
Also, how often do you plan to invest? Weekly? Monthly? Annually? The more consistent your investment schedule, the more your investment will grow. If you invest sporadically, you will probably not get as great a return.
So, how much will your investment be worth over time? This calculator will give you an estimate of what your investment will eventually be worth, depending on how much you invest, how long you invest and your rate of return.
Want to know how long it will take you to become a millionaire? By entering in a few pieces of information, including your current age, the amount you currently have invested and plan to invest and the age you’d like to be a millionaire, this calculator will give you an estimate of when your savings will hit seven digits.
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