 |
| Starting amount |
| The starting balance or current
amount you have invested or saved. |
|
| Additional contributions |
| The amount that you plan on
adding to your savings or investment each period. The
investment period options include monthly, quarterly and
annually. |
|
| Years |
| The total number of years
you are planning to save or invest. |
|
| Rate of return |
| The annual rate of return
for this investment or savings account. Historically the
major stock indexes have averaged 11% to 12% per year.
If you plan on withdrawing your money within five years,
you may wish to choose a more conservative rate of return.
|
|
| Compounding |
| This is the frequency that
your investment's interest or income is added to your
account. The more frequently this occurs, the sooner your
accumulated interest income will generate additional interest.
For stock and mutual fund investments you should choose
'Annual'. For savings accounts and CDs all of the options
are valid, although you will need to check with your financial
institution to find out how often interest is being compounded
on your particular investment. |
|
Equal
Housing Lender, All Rights Reserved.