I haven’t done many calculations around here lately and since we both know I am number-crunching incessently, I thought it was about time to do a number crunching exercise here on the blog with our numbers. Today, we’re going to look at 3 scenarios into the future: a terrible one, a low-return one, and a good return one. Let’s see how the numbers play out:
Where we Stand
These calculations are based on our portfolio’s current $150,000 value (a nice even number to work with, which is part of why we’re running the simulations now!). The monthly savings for the first year assume $2500 – the $1500 to max out Mr. T’s 401k (automatic) and a mix of employer contributions and my savings for another $1000/month. This is our current savings rate. Then, after the first year, those monthly savings amount skyrocket to $4500 because in 2019, we will start the year with a paid off house and we can throw our mortgage payment directly into savings! To make these calculations, I use my very favorite compound interest calculator to plug in the numbers.