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Math is simple - Either you know how to calculate it or you don't HyogaRott Send a noteboard - 04/03/2013 11:55:24 AM

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View original postThere are 52 weeks in a year (composed of 12 months), not 4 weeks a month .

True, but if you have a 50 year investment that compounds interest weekly you should call the Fed; they need to have the Treasury print (a LOT) more money.

Again you are being illogical. You calculated the income and thus the amount set aside for investment using 4 weeks a month (that means 48 weekly periods 4 * 12 =4 8 ) instead of 52 weeks in the year, then dividing by 12 to achieve an average monthly. You lost 4 pay cycles by doing so which is what threw off your monthly savings amount.
7 * 40 * 52 = 14560
14560 / 12 = 1213.33
1213.33 * 0.04 = 48.53 <- I rounded down
--OR--
7 * 40 * 52 = 14560
14560 * 0.04 = 582.4
582.4 / 12 = 48.53

If you had bothered to actually read my original post, those calculation were self evident. Interest growth occurs in a completely different calculation so does not belong in this part of the discussion.


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View original post4% is the amount of the monthly pay that is invested, not the compound interest rate (though 4% is still better than the ROI given by Social Security).

Right, I had to guess the interest rate since you did (and still have) not state(d) it, so I used the same 4%. As good as any number if I must just pluck one from the air. Since you stated the return would be ~$1,253,000 though I assume you have at least a ballpark figure in mind, apparently somewhere between 11% and 12% annually. No, SS cannot beat that, but gambling anything that does will be there in 50 years is rolling some pretty big dice.

You never asked. Standard calculations utilize 8, 10, 12, or 15 percent. I think used about 11, which is very easily achieved over a 50 year period with decent investments, and it is anything but a gamble if you use half a brain.
This message last edited by HyogaRott on 04/03/2013 at 05:28:34 PM
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I really think you terribly misread what I said *NM* - 02/03/2013 06:59:56 AM 433 Views
Yes he did. He has very poor reading comprehension skills. *NM* - 03/03/2013 01:07:59 AM 459 Views
I really do not think I did. - 04/03/2013 01:43:02 AM 866 Views
I'm pretty confident you have - 04/03/2013 11:49:19 AM 852 Views
We evidently disagree on what constitutes a Ponzi scheme. - 11/03/2013 09:56:27 PM 777 Views
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Your attacks on republican ideals would have more credit if you understood them - 02/03/2013 04:27:34 AM 808 Views
aH yes the great liberal investmetn/retirement plan that offers me a NEGATIGVE rate of return... - 02/03/2013 11:51:50 AM 723 Views
Do you sincerely believe people earning $14,560/year can afford investing 4% of it? - 04/03/2013 12:53:30 AM 883 Views
*sigh* - 04/03/2013 03:43:08 AM 716 Views
I tried it with compound interest; $44.80/month at 4% for 50 years still does not get to $1.25 mill. - 04/03/2013 04:24:51 AM 796 Views
Here are some clues. - 04/03/2013 04:37:39 AM 662 Views
It is math, not the Riddle of the Sphinx: EIther it adds up or does not. - 04/03/2013 05:02:39 AM 814 Views
Math is simple - Either you know how to calculate it or you don't - 04/03/2013 11:55:24 AM 896 Views
Indeed. - 11/03/2013 09:53:59 PM 797 Views
Re: Indeed. - 13/03/2013 05:00:10 PM 981 Views
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do *YOU* know what "living in poverty" means? - 05/03/2013 05:49:14 PM 810 Views
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how about respond to a post with logic and civility instead of being a troll for once? - 05/03/2013 11:03:00 PM 871 Views
All I have used is civility and logic, or least as much civility as was warrented. - 06/03/2013 04:28:04 AM 822 Views
yeah, it's my fault for stooping to your level.... - 08/03/2013 07:22:24 PM 859 Views
Re: yeah, it's my fault for stooping to your level.... - 10/03/2013 01:42:26 PM 733 Views
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No loss. - 13/03/2013 04:37:41 PM 673 Views
"Rah! Rah! Rah!" Can we please cut out all this blather and bile? - 05/03/2013 11:53:41 PM 750 Views
spoken like a true enemy of the state! - 06/03/2013 12:54:38 AM 718 Views
Re: spoken like a true enemy of the state! - 08/03/2013 03:04:37 PM 777 Views
I was not trolling, but clarifying. - 11/03/2013 09:53:48 PM 800 Views

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