Wednesday May 16th, 2012

Investment Goal Calculator

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.

An initial investment of AMT_CURRENT and contributions of AMT_SAVE_PERIOD SAVING_FREQUENCY_LOWER may total CURRENT_ENDING_BALANCE in YEARS_TO_SAVE years.

**GRAPH**

This assumes you have a tax deferred investment with a rate of return ROR_INVEST and earnings are compounded COMPOUND_DESC. It also assumes that all new contributions happen at the PAYMENTS_AT_START of each SAVING_FREQUENCY_LOWER period. If your investment's earnings were taxable at a combined marginal tax rate of MARGINAL_TAX_RATE, your ending balance would be reduced to CURRENT_ENDING_BALANCE_AF. After taxes and INFLATION_RATE annually for inflation, your total would be further reduced to CURRENT_ENDING_BALANCE_AFI.

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Results Summary
Investment goal	AMT_TARGET
Number of years to accumulate	YEARS_TO_SAVE
Amount of initial investment	AMT_CURRENT
Periodic contribution	AMT_SAVE_PERIOD SAVING_FREQUENCY_LOWER
Rate of return on investment	ROR_INVEST compounded COMPOUND_DESC
Expected inflation rate	INFLATION_RATE
Federal marginal tax rate	FED_TAX_RATE
State marginal tax rate	STATE_TAX_RATE
State taxes deductible on Federal return?	STATE_TAXES_DEDUCTIBLE
Combined marginal tax rate	MARGINAL_TAX_RATE
Tax Deferred Investment Total	CURRENT_ENDING_BALANCE
Taxable Investment Total	CURRENT_ENDING_BALANCE_AF
Taxable Investment After Inflation	CURRENT_ENDING_BALANCE_AFI

Investment Results by Year

**REPEATING GROUP**

This Financial Calculator requires SUN's Java™ Plug-in. If you see this message you will need to download SUN's Java™ Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing “Install ActiveX Control”.

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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. From January 1970 to December 2008, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 9.7% (source: www.standardandpoors.com). During this period, the highest 12-month return was 61%, from June 1982 through June 1983. The lowest 12-month return was -39%, which happened twice, once from September 1973 to September 1974 and again from November 2007 to November 2008. 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 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), which has a long-term average of 3.1% annually, from 1925 through 2008. The CPI for 2008 was 4.0%, as reported by the Minneapolis Federal Reserve.

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 2008 Caution: Do not use these tax rate schedules to figure 2007 taxes. Use only to figure 2008 estimates.
Tax rate	Married filing jointly or Qualified Widow(er)	Single	Head of household	Married filing separately
10%	$0 - 16,050	$0 - 8,025	$0 - $11,450	$0 - 8,025
15%	$16,051- 65,100	$8,026- 32,550	$11,451- 43,650	$8,026- 32,550
25%	$65,101- 131,450	$32,551- 78,850	$43,651- 112,650	$32,551- 65,725
28%	$131,451- 200,300	$78,851- 164,550	$112,651- 182,400	$65,726- 100,150
33%	$200,301- 357,700	$164,551- 357,700	$182,401- 357,700	$100,151- 178,850
35%	over $357,700	over $357,700	over $357,700	over $178,850

Source: http://www.irs.gov/pub/irs-drop/rp-07-66.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.