Timeline for What percent of minimum wage should I save from today,if I expect a certain percent of the then minimum wage,as income from corpus,after retirement?
Current License: CC BY-SA 3.0
8 events
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| Feb 2, 2016 at 5:49 | history | tweeted | twitter.com/StackFinance/status/694397114600812544 | ||
| Feb 1, 2016 at 22:57 | comment | added | Whirl Mind | @Michael : Good point, using inflation-adjusted return rate. | |
| Feb 1, 2016 at 22:30 | answer | added | user662852 | timeline score: 1 | |
| Feb 1, 2016 at 22:26 | comment | added | Michael | You can ignore inflation. You just use an inflation adjusted return on investment figure, so if you assume 3% inflation and 7% return, then just use 4%. As I said though, you can't develop a simple mathematical formula for this, you can develop a formula to calculate the sum of money you have from saving a given amount each month or year for a given time with a given return... but calculating the amount that taken out for a given number of years whilst adding the return and deducting the payout..... that is an iterative calculation. You could do it in excel/office but it's not a formula. | |
| Feb 1, 2016 at 21:48 | comment | added | user662852 | The inflation appears to bake into the rate of return here. Have you tried using the Excel standard functions PV (to determine the constant dollar amount needed as present value on date A2 to pay out a function of local income until A3) and PMT (to determine the payments needed to achieve a future value of this amount on A2, between A1 and A2)? | |
| Feb 1, 2016 at 19:53 | comment | added | Michael | The maths for this stuff is actually quite complicated, even with all the stuff you excluded, as you're into series' and iterative calculations. If you actually want to figure out how much to save, rather than the answer to your question, you could try some numbers in an online pension payout calculator, to see what pot gives you your target income, then try some numbers in an online compound interest calculator to see what you need to save monthly to get the required pot. | |
| Feb 1, 2016 at 18:11 | history | edited | Whirl Mind | CC BY-SA 3.0 |
added assumption to the body
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| Feb 1, 2016 at 18:04 | history | asked | Whirl Mind | CC BY-SA 3.0 |