Investment Calculator
Calculate the future value of your investment with optional monthly contributions and compound returns.
What is a good rate of return on investments?
S&P 500 historically returns ~10% annually long-term. Conservative estimates use 7-8% (accounts for fees, inflation). Bonds return 3-5%, real estate 8-12%, high-yield savings 4-5%. Diversified portfolio: 60% stocks / 40% bonds typically returns 7-8%. Higher returns = higher risk. Young investors can take more risk.
Should I invest in stocks or bonds?
It depends on age and risk tolerance. Young (20s-40s): 80-90% stocks for growth. Middle age (40s-50s): 60-70% stocks, 30-40% bonds. Near retirement (60+): 40-50% stocks, 50-60% bonds for stability. Common rule: bonds = your age (e.g., age 40 = 40% bonds). Adjust based on risk comfort.
What are index funds and why invest in them?
Index funds track market indexes like S&P 500. Benefits: low fees (0.03-0.2% vs 1%+ for managed funds), automatic diversification, consistently outperform 80-90% of actively managed funds long-term. Warren Buffett recommends them for most investors. Easy way to invest without picking individual stocks.
How often should I check my investments?
Quarterly or semi-annually is sufficient for long-term investors. Daily checking leads to emotional decisions and panic selling during dips. Markets fluctuate - what matters is 10-20 year trajectory. Rebalance annually. Focus on continuing contributions, not daily values. Time in market beats timing the market.