The Vaughn / McLaughlin Team | Crystal River, FL

Investment Goals

What will it take to reach your investment goal? Use this investment goal calculator to determine how much your investment might grow before taxes, after taxes and after taxes and inflation. It will also provide suggestions on what to change if your plan doesn't look like it will meet your investment goal.

While this calculator can provide you with some insight, it was developed to be very general and may not fit everyone’s personal situation. Please feel free to contact our office after using this calculator so that we can perform a more thorough analysis.

Definitions

Investment goal

Your goal for the total value of your investment or investments.

Number of years to accumulate

The number of years you have to save.

Amount of initial investment

Total you amount you will initially invest or have currently have invested toward your investment goal.

Periodic contribution

The amount you will contribute each period to your investment. You are also able to select whether you wish to have your contribution happen at the beginning or the end of the period.

Investment frequency

The frequency you will make regular contributions to this investment.

Rate of return on investment

This is the rate of return you expect from your investments. You are also able to select the frequency that earnings are compounded in your investment account. The actual rate of return is largely dependent on the type of investments you select. For example, from December 2000 to December 2010, the annual compounded rate of return for the S&P 500 was 0.899%, including reinvestment of dividends. From January 1970 to December 2010, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 10.05% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a bank may pay as little as 1% or less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.

Expected Inflation Rate

What you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI). The CPI for 2010 was 2.4%, as reported by the Minneapolis Federal Reserve. From 1925 through 2010 the CPI has long-term average of 3.1% annually. Over the last 30 years highest CPI recorded was 13.5% in 1980.

Federal marginal tax rate

Your Federal marginal tax rate. You can use the table below to estimate your marginal tax rate:

Filing Status and Income Tax Rates 2011 Caution: Do not use these tax rate schedules to figure 2010 taxes. Use only to figure 2011 estimates.
Tax rate	Married filing jointly or qualified widow(er)	Single	Head of household	Married filing separately
10%	$0 - 17,000	$0 - 8,500	$0 - $12,150	$0 - 8,500
15%	$17,000 - 69,000	$8,500 - 34,500	$12,150 - 46,250	$8,500 - 34,500
25%	$69,000 - 139,350	$34,500 - 83,600	$46,250 - 119,400	$34,500 - 69,675
28%	$139,350 - 212,300	$83,600 - 174,400	$119,400 - 193,350	$69,675 - 106,150
33%	$212,300 - 379,150	$174,400 - 379,150	$193,350 - 379,150	$106,150 - 189,575
35%	over $379,150	over $379,150	over $379,150	over $189,575

Source: http://www.irs.gov/pub/irs-drop/rp-09-50.pdf

State marginal tax rate

Your marginal state tax rate. If your state taxes are deductible on your Federal return, we will take this into account when calculating your combined state and Federal marginal tax rate.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Calculators are provided by an independent third party and are being made available to you as self-help tools for your independent use and are not intended to provide investment advice or be representative of actual results. We do not guarantee their applicability or accuracy in regards to your individual circumstances. The determinations made by these calculators should not be construed as guarantees or projections. Moreover, the reasonableness of certain information may change over time because of changes in tax law, investment trends and your personal circumstances. The information contained here is based on current law and has been obtained from sources believed to be reliable, but we do not guarantee its accuracy. Investment results can vary considerably depending on the type of securities involved, general market conditions and other factors. It is important that you periodically review and update your plans. Raymond James does not provide tax or legal advice. You should contact your tax or legal advisor concerning your particular situation. All investments carry a degree of risk, and past performance is not a guarantee of future results.