
Cool Million
What might it take to save one million dollars? This financial calculator
helps you find out. Enter in your current savings plan and view graphically
your financial results for each year until you retire! A complete report tells
you when you could hit your Cool Million  and what you can do to reach this
milestone on target!
Definitions
 Your age
 Your current age in years.
 Millionaire target age
 The age you want to become a millionaire. For example, to find out what it
could take to be a millionaire by age 40, enter 40 here.
 Amount currently invested
 Total value of all of your current investments. Although you could include
your home and personal property in this amount  it is a bit more accurate to
include only your savings, retirement accounts and investments.
 Savings per month
 The amount you will contribute each month to your investments. This
calculator assumes that all savings are added to your account at the beginning
of the month.
 Expected Rate of Return
 This is the annually compounded rate of return you expect from your
investments. For the purposes of this calculator, taxation is not factored into
the results. If you pay taxes on the interest, dividends or capital gains from
these investments, you may wish to enter your after tax rate of return.
The
actual rate of return is largely dependent on the type of investments you
select. From January 1970 to December 2004, the average compounded rate of
return for the S&P 500, including reinvestment of dividends, was
approximately 11.5% per year. During this period, the highest 12month return
was 64%, and the lowest was 39%. Savings accounts at a bank pay as little as
1% or less. 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 subject to higher risk and volatility. The actual rate of return on
investments can vary widely over time, especially for longterm investments.
This includes the potential loss of principal on your investment.
 Expected Inflation Rate
 What you expect for the average longterm inflation rate. A common measure
of inflation in the U.S. is the Consumer Price Index (CPI), which has a
longterm average of 3.1% annually, from 1925 through 2004.


