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Retirement Investment Strategies Overview

This document models the growth of four investment funds over 10 years with initial investments of $25,000 and annual contributions of $2,500. The money market fund had the lowest returns of 3.5% annually and ended at $65,620. The income fund returned 6% annually and ended at $79,700. The growth and income fund returned 8% annually and ended at $93,087. The aggressive growth fund provided 11% returns annually and had the highest ending value of $117,389. In total, the portfolio grew to $355,796 over the 10 year period.

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nigam34
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6 views3 pages

Retirement Investment Strategies Overview

This document models the growth of four investment funds over 10 years with initial investments of $25,000 and annual contributions of $2,500. The money market fund had the lowest returns of 3.5% annually and ended at $65,620. The income fund returned 6% annually and ended at $79,700. The growth and income fund returned 8% annually and ended at $93,087. The aggressive growth fund provided 11% returns annually and had the highest ending value of $117,389. In total, the portfolio grew to $355,796 over the 10 year period.

Uploaded by

nigam34
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd

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Investments
Money Market Fund
Income Fund
Growth & Income
Aggressive Growth Fund

Initial
$25,000
$25,000
$25,000
$25,000

Annual
$2,500
$2,500
$2,500
$2,500

Money Market Investment


Money Market Start
Money Market Return (%)
Money Market End

Year 0
$27,500
$27,500
3.5%
$28,463

Year 1
$2,500
$30,963
3.5%
$32,046

Year 2
$2,500
$34,546
3.5%
$35,755

Year 3
$2,500
$38,255
3.5%
$39,594

Year 4
$2,500
$42,094
3.5%
$43,568

Income Fund Investment


Income Fund Start
Income Fund Return (%)
Income Fund End

$27,500
$27,500
6.0%
$29,150

$2,500
$31,650
6.0%
$33,549

$2,500
$36,049
6.0%
$38,212

$2,500
$40,712
6.0%
$43,155

$2,500
$45,655
6.0%
$48,394

Growth & Income Investment


Growth & Income Start
Growth & Income Return (%)
Growth & Income End

$27,500
$27,500
8.0%
$29,700

$2,500
$32,200
8.0%
$34,776

$2,500
$37,276
8.0%
$40,258

$2,500
$42,758
8.0%
$46,179

$2,500
$48,679
8.0%
$52,573

Aggressive Growth Investment


Aggressive Growth Start
Aggressive Growth Return (%)
Aggressive Growth End

$27,500
$27,500
11.0%
$30,525

$2,500
$33,025
11.0%
$36,658

$2,500
$39,158
11.0%
$43,465

$2,500
$45,965
11.0%
$51,021

$2,500
$53,521
11.0%
$59,409

Saving for Retirement

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Year 5
$2,500
$46,068
3.5%
$47,680

Year 6
$2,500
$50,180
3.5%
$51,936

Year 7
$2,500
$54,436
3.5%
$56,341

Year 8
$2,500
$58,841
3.5%
$60,901

Year 9
$2,500
$63,401
3.5%
$65,620

Year 10

$2,500
$50,894
6.0%
$53,948

$2,500
$56,448
6.0%
$59,834

$2,500
$62,334
6.0%
$66,074

$2,500
$68,574
6.0%
$72,689

$2,500
$75,189
6.0%
$79,700

$2,500
$55,073
8.0%
$59,479

$2,500
$61,979
8.0%
$66,937

$2,500
$69,437
8.0%
$74,992

$2,500
$77,492
8.0%
$83,692

$2,500
$86,192
8.0%
$93,087

$2,500
$61,909
11.0%
$68,719

$2,500
$71,219
11.0%
$79,053

$2,500
$81,553
11.0%
$90,523

$2,500
$93,023
11.0%
$103,256

$2,500
$105,756
11.0%
$117,389
Total

$65,620
Uniform 2%

5%

Normal 6%

5%

$79,700

$93,087
Normal 8% 10%

$117,389
Normal 11% 16%

$355,796

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(Min, Max)

(Mean, St. Dev.)

(Mean, St. Dev.)

(Mean, St. Dev.)

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