Any tool to help predict net worth in N years?

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ColoradoNewBiker
Posts: 32
Joined: Sun Apr 05, 2015 1:08 pm

Any tool to help predict net worth in N years?

Post by ColoradoNewBiker » Thu Aug 16, 2018 11:04 pm

I searched around but didn't find an answer. I'd like to have a tool with input - current net worth, yearly contribution (regardless of retirement or taxable account), stock/bond split (assuming yearly contribution also gets the same split). It can tell me what the net worth would (likely to) be in N years (N=5, 10, 20). Does anyone know such tool? Thanks.

UniversityEmployee9
Posts: 104
Joined: Wed Mar 18, 2015 10:01 am

Re: Any tool to help predict net worth in N years?

Post by UniversityEmployee9 » Thu Aug 16, 2018 11:07 pm

Networthify.com

ColoradoNewBiker
Posts: 32
Joined: Sun Apr 05, 2015 1:08 pm

Re: Any tool to help predict net worth in N years?

Post by ColoradoNewBiker » Thu Aug 16, 2018 11:12 pm

thanks but looks like that website is down.

Silver Bullet
Posts: 134
Joined: Tue Sep 26, 2017 1:18 am

Re: Any tool to help predict net worth in N years?

Post by Silver Bullet » Thu Aug 16, 2018 11:51 pm

https://firecalc.com
This site is more complex than you’re requesting, but makes assumptions for inflation.
You can zero out the assumptions to run your model.

aaja
Posts: 63
Joined: Mon Mar 12, 2018 9:40 pm

Re: Any tool to help predict net worth in N years?

Post by aaja » Fri Aug 17, 2018 12:13 am

https://www.edwardjones.com/preparing-f ... lator.html

Should be close to what you are looking for. No stock bind split but you can input your expected return.

ColoradoNewBiker
Posts: 32
Joined: Sun Apr 05, 2015 1:08 pm

Re: Any tool to help predict net worth in N years?

Post by ColoradoNewBiker » Fri Aug 17, 2018 8:30 am

Thanks! Yeah, my calculation should be simple and the Ed Jones calculator is good enough.

ryman554
Posts: 1116
Joined: Sun Jan 12, 2014 9:44 pm

Re: Any tool to help predict net worth in N years?

Post by ryman554 » Fri Aug 17, 2018 8:59 am

cuihang wrote:
Thu Aug 16, 2018 11:04 pm
I searched around but didn't find an answer. I'd like to have a tool with input - current net worth, yearly contribution (regardless of retirement or taxable account), stock/bond split (assuming yearly contribution also gets the same split). It can tell me what the net worth would (likely to) be in N years (N=5, 10, 20). Does anyone know such tool? Thanks.
Excel/googlesheets. It's really a very simple calculation and well worth understanding how to do.

Inputs: (real) assumed growth in equities and bonds. Periodic investments and amounts.
All you have to do is compute the "interest" each month, add the periodic investment onto it and sum to the previous month.
Drag down for however many months you have/want.

It ignores a whole host of things (rebalancing, for one) and only computes the "average" case, so it's at best, well, useless, but once you understand the power of compounding you can start to poke into a lot of things.

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ruralavalon
Posts: 14250
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Location: Illinois

Re: Any tool to help predict net worth in N years?

Post by ruralavalon » Fri Aug 17, 2018 9:04 am

cuihang wrote:
Thu Aug 16, 2018 11:04 pm
I searched around but didn't find an answer. I'd like to have a tool with input - current net worth, yearly contribution (regardless of retirement or taxable account), stock/bond split (assuming yearly contribution also gets the same split). It can tell me what the net worth would (likely to) be in N years (N=5, 10, 20). Does anyone know such tool? Thanks.
www.firecalc.com

www.i-orp.com
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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#Cruncher
Posts: 2692
Joined: Fri May 14, 2010 2:33 am
Location: New York City
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Re: Any tool to help predict net worth in N years?

Post by #Cruncher » Fri Aug 17, 2018 11:14 am

ryman554 wrote:
Fri Aug 17, 2018 8:59 am
Inputs: (real) assumed growth in equities and bonds. Periodic investments and amounts.
All you have to do is compute the "interest" each month, add the periodic investment onto it and sum to the previous month.
Drag down for however many months you have/want.
This certainly works. But the same result can be computed in one cell with the Excel FV function. The following table illustrates this. Note that cell B8 computes the same value as is accumulated at the bottom in cell B29.

Code: Select all

Row  Col A                    Col B
  1  Stock growth            6.000%
  2  Bond growth             1.000%
  3  Years                       20
  4  Annual contribution     10,000
  5  Starting balance       100,000
  6  Stock percent          80.000%
  7  Average growth          5.000% = B6 * B1 + (1 - B6) * B2
  8  Ending balance         595,989 = FV(B7, B3, -B4, -B5, 0)
     Year                   Balance

Code: Select all

  9     0                   100,000 = B5
 10     1                   115,000 = B9  * (1 + B$7) + B$4
 11     2                   130,750   vvvvv
 12     3                   147,288   vvvvv
 13     4                   164,652   vvvvv
 14     5                   182,884   vvvvv
 15     6                   202,029   vvvvv
 16     7                   222,130   vvvvv
 17     8                   243,237   vvvvv
 18     9                   265,398   vvvvv
 19    10                   288,668   vvvvv
 20    11                   313,102   vvvvv
 21    12                   338,757   vvvvv
 22    13                   365,695   vvvvv
 23    14                   393,979   vvvvv
 24    15                   423,678   vvvvv
 25    16                   454,862   vvvvv
 26    17                   487,605   vvvvv
 27    18                   521,986   vvvvv
 28    19                   558,085   vvvvv
 29    20                   595,989 = B28 * (1 + B$7) + B$4
ryman554 in same post wrote:It ignores a whole host of things (rebalancing, for one) ...
Sounds like you're thinking of computing the growth of stocks and bonds in separate columns, Ryman, each with its own growth rate and running balance. If so, you're right that rebalancing is ignored. But if a single column is used with the total portfolio balance and an average portfolio growth rate (as I do above), then annual rebalancing is done implicitly.

If one wants to enter the average portfolio growth rate directly, just type the FV function with the desired four parameters (growth rate, years, annual contribution, and starting balance [1]). To duplicate the entire spreadsheet, however, do the following steps:
  • Select All, Copy, and Paste the following at cell A1 of an empty sheet. [2]

    Code: Select all

    Stock growth	0.06
    Bond growth	0.01
    Years	20
    Annual contribution	10000
    Starting balance	100000
    Stock percent	0.8
    Average growth	=B6*B1+(1-B6)*B2
    Ending balance	=FV(B7,B3,-B4,-B5,0)
    0	=B5
    =A9+1	=B9*(1+B$7)+B$4
  • Format the cells for readability.
  • Drag cells A10 & B10 down for as many years as desired.
  • Change the assumptions as desired in cells B1:B6.
  1. If annual contribution and starting balance are entered as positive numbers, the future value will be shown as a negative number. To see it as a positive number, just enter the annual contribution and starting balance as negative numbers (as I do in the spreadsheet's cell B8).
  2. If you have trouble pasting, try "Paste Special" and "Text". If you still have problems, this post by LadyGeek shows another way. Or just enter manually.

ColoradoNewBiker
Posts: 32
Joined: Sun Apr 05, 2015 1:08 pm

Re: Any tool to help predict net worth in N years?

Post by ColoradoNewBiker » Fri Aug 17, 2018 2:14 pm

#Cruncher wrote:
Fri Aug 17, 2018 11:14 am
ryman554 wrote:
Fri Aug 17, 2018 8:59 am
Inputs: (real) assumed growth in equities and bonds. Periodic investments and amounts.
All you have to do is compute the "interest" each month, add the periodic investment onto it and sum to the previous month.
Drag down for however many months you have/want.
This certainly works. But the same result can be computed in one cell with the Excel FV function. The following table illustrates this. Note that cell B8 computes the same value as is accumulated at the bottom in cell B29.

Code: Select all

Row  Col A                    Col B
  1  Stock growth            6.000%
  2  Bond growth             1.000%
  3  Years                       20
  4  Annual contribution     10,000
  5  Starting balance       100,000
  6  Stock percent          80.000%
  7  Average growth          5.000% = B6 * B1 + (1 - B6) * B2
  8  Ending balance         595,989 = FV(B7, B3, -B4, -B5, 0)
     Year                   Balance

Code: Select all

  9     0                   100,000 = B5
 10     1                   115,000 = B9  * (1 + B$7) + B$4
 11     2                   130,750   vvvvv
 12     3                   147,288   vvvvv
 13     4                   164,652   vvvvv
 14     5                   182,884   vvvvv
 15     6                   202,029   vvvvv
 16     7                   222,130   vvvvv
 17     8                   243,237   vvvvv
 18     9                   265,398   vvvvv
 19    10                   288,668   vvvvv
 20    11                   313,102   vvvvv
 21    12                   338,757   vvvvv
 22    13                   365,695   vvvvv
 23    14                   393,979   vvvvv
 24    15                   423,678   vvvvv
 25    16                   454,862   vvvvv
 26    17                   487,605   vvvvv
 27    18                   521,986   vvvvv
 28    19                   558,085   vvvvv
 29    20                   595,989 = B28 * (1 + B$7) + B$4
ryman554 in same post wrote:It ignores a whole host of things (rebalancing, for one) ...
Sounds like you're thinking of computing the growth of stocks and bonds in separate columns, Ryman, each with its own growth rate and running balance. If so, you're right that rebalancing is ignored. But if a single column is used with the total portfolio balance and an average portfolio growth rate (as I do above), then annual rebalancing is done implicitly.

If one wants to enter the average portfolio growth rate directly, just type the FV function with the desired four parameters (growth rate, years, annual contribution, and starting balance [1]). To duplicate the entire spreadsheet, however, do the following steps:
  • Select All, Copy, and Paste the following at cell A1 of an empty sheet. [2]

    Code: Select all

    Stock growth	0.06
    Bond growth	0.01
    Years	20
    Annual contribution	10000
    Starting balance	100000
    Stock percent	0.8
    Average growth	=B6*B1+(1-B6)*B2
    Ending balance	=FV(B7,B3,-B4,-B5,0)
    0	=B5
    =A9+1	=B9*(1+B$7)+B$4
  • Format the cells for readability.
  • Drag cells A10 & B10 down for as many years as desired.
  • Change the assumptions as desired in cells B1:B6.
  1. If annual contribution and starting balance are entered as positive numbers, the future value will be shown as a negative number. To see it as a positive number, just enter the annual contribution and starting balance as negative numbers (as I do in the spreadsheet's cell B8).
  2. If you have trouble pasting, try "Paste Special" and "Text". If you still have problems, this post by LadyGeek shows another way. Or just enter manually.
This is really great. Thanks!

ryman554
Posts: 1116
Joined: Sun Jan 12, 2014 9:44 pm

Re: Any tool to help predict net worth in N years?

Post by ryman554 » Sat Aug 18, 2018 7:43 am

#Cruncher wrote:
Fri Aug 17, 2018 11:14 am
ryman554 wrote:
Fri Aug 17, 2018 8:59 am
Inputs: (real) assumed growth in equities and bonds. Periodic investments and amounts.
All you have to do is compute the "interest" each month, add the periodic investment onto it and sum to the previous month.
Drag down for however many months you have/want.
This certainly works. But the same result can be computed in one cell with the Excel FV function. The following table illustrates this. Note that cell B8 computes the same value as is accumulated at the bottom in cell B29.

Code: Select all

Row  Col A                    Col B
  1  Stock growth            6.000%
  2  Bond growth             1.000%
  3  Years                       20
  4  Annual contribution     10,000
  5  Starting balance       100,000
  6  Stock percent          80.000%
  7  Average growth          5.000% = B6 * B1 + (1 - B6) * B2
  8  Ending balance         595,989 = FV(B7, B3, -B4, -B5, 0)
     Year                   Balance

Code: Select all

  9     0                   100,000 = B5
 10     1                   115,000 = B9  * (1 + B$7) + B$4
 11     2                   130,750   vvvvv
 12     3                   147,288   vvvvv
 13     4                   164,652   vvvvv
 14     5                   182,884   vvvvv
 15     6                   202,029   vvvvv
 16     7                   222,130   vvvvv
 17     8                   243,237   vvvvv
 18     9                   265,398   vvvvv
 19    10                   288,668   vvvvv
 20    11                   313,102   vvvvv
 21    12                   338,757   vvvvv
 22    13                   365,695   vvvvv
 23    14                   393,979   vvvvv
 24    15                   423,678   vvvvv
 25    16                   454,862   vvvvv
 26    17                   487,605   vvvvv
 27    18                   521,986   vvvvv
 28    19                   558,085   vvvvv
 29    20                   595,989 = B28 * (1 + B$7) + B$4
ryman554 in same post wrote:It ignores a whole host of things (rebalancing, for one) ...
Sounds like you're thinking of computing the growth of stocks and bonds in separate columns, Ryman, each with its own growth rate and running balance. If so, you're right that rebalancing is ignored. But if a single column is used with the total portfolio balance and an average portfolio growth rate (as I do above), then annual rebalancing is done implicitly.

If one wants to enter the average portfolio growth rate directly, just type the FV function with the desired four parameters (growth rate, years, annual contribution, and starting balance [1]). To duplicate the entire spreadsheet, however, do the following steps:
  • Select All, Copy, and Paste the following at cell A1 of an empty sheet. [2]

    Code: Select all

    Stock growth	0.06
    Bond growth	0.01
    Years	20
    Annual contribution	10000
    Starting balance	100000
    Stock percent	0.8
    Average growth	=B6*B1+(1-B6)*B2
    Ending balance	=FV(B7,B3,-B4,-B5,0)
    0	=B5
    =A9+1	=B9*(1+B$7)+B$4
  • Format the cells for readability.
  • Drag cells A10 & B10 down for as many years as desired.
  • Change the assumptions as desired in cells B1:B6.
  1. If annual contribution and starting balance are entered as positive numbers, the future value will be shown as a negative number. To see it as a positive number, just enter the annual contribution and starting balance as negative numbers (as I do in the spreadsheet's cell B8).
  2. If you have trouble pasting, try "Paste Special" and "Text". If you still have problems, this post by LadyGeek shows another way. Or just enter manually.
I know about the PV function and other financial function. What I was trying to convey to the OP was the way and the math to do it by themselves (and avoiding the tedious arithmetic). Knowing/deriving what goes into PV is much more important than the actual calculation, and allows OP to start to ask "what if?" A lot easier.

User avatar
rhinopylon
Posts: 56
Joined: Mon Apr 02, 2018 10:51 am

Re: Any tool to help predict net worth in N years?

Post by rhinopylon » Sat Aug 18, 2018 4:54 pm

Personal Capital is really good at generating different scenarios and future growth.

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