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This Present Value Calculator tool helps estimate the present value of your future retirement savings contributions. It is adapted from Ayres and Nalebuff (http://www.lifecycleinvesting.net/resources.html), and is presented here without their permission.
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For example, for a 30-year old with an income of $75,000 who is saving 10% of income and expects to retire at age 70, the present value of his or her future savings is $317,250. This value does not take into account Social Security.
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Example Values
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Assumptions
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Current Age (23-69)3030
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Planned Retirement Age7070
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Current Income $ 75,000 $ 75,000
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Current Retirement Savings $ 50,000 $ 50,000
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% of Future Income You Plan to Save for Retirement10%10%
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Desired Equity Allocation at Date of Retirement50%60%
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Estimated PV of Future Income as a Multiple of Current Income42
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Estimated PV of Future Retirement Savings Contributions $ 317,250
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Estimated PV of Current Savings and Future Retirement Savings Contributions
 $ 367,250
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Target Equity Allocation (max 100%) at Current Age100.00%
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Target Bond Allocation at Current Age
0.00%
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