When Does One Plus One Equal More Than Two? Investment Growth Calculators

If you are fifty years old or older, you may remember the slide rule and pencil in math class; if you are younger than that, you probably had the advantage of being able to use a calculator in your high school courses. Either way, the results are what mattered, and when you use investment growth calculators, the results matter even more than they did in Algebra.

That is because investment growth calculators are tools that do better than tell you the value of some arbitrary X. Investment growth calculators show you, in very real terms, and usually with pretty graphs, charts, or tables, how your investment dollars will multiply under certain conditions.

Basically, although they cannot determine the actual performance of, say, stocks, for example (now that would really be an amazing tool!), they can provide you valuable information about how your finances may grow with certain assumptions.

Let’s say, for example, that you are now thirty-five years old. You think the government is crazy when it says that seventy is considered retirement age, and you want to be able to grab the golf clubs and the suitcase while you are still young enough to enjoy the greens and leisurely travel to foreign lands. You want to kiss your career goodbye the minute you hit the big 6-0, but you have no idea if that is really possible or not. Well, you can play around with the various fields of investment growth calculators to discover how much you need to invest, what return you need to get, and how many years you need to invest to reach that retirement goal.

If your kids are now toddlers and your goal is to put them through college in fifteen years, do you know what you have to do to be able to get them that coveted degree without flipping burgers while they study? Advisors can show you some guidelines using investment growth calculators.

One thing you must remember is that the answers you get from this tool are only as good as the information you program into them. If you are your advisor put in incorrect information or exaggerated figures you’re asking for major problems with your investments. Therefore always double check the information to ensure its accuracy.

With investment growth calculators, you can change various fields and see how those changes would affect your investment income. You can change the number of years you would like to (or are able to) invest, the rate of return (expected, of course, not guaranteed!), your initial balance, and even your tax rate. Although hypothetical in nature, investment growth calculators are a valuable tool when deciding your investment plan.