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Saturday, 30 September 2006

Goals

If you want to do a quick "high level" plot of your net worth goal, there are many calculators available on-line, such as this one from National Australia Bank. You just plug in your current net worth, expected annual savings, average investment return and period. It provides a value for each future year, which would be print out and use to check yourself against each year going forward. For more detailed modelling (eg. breakdown by asset class, sensitivity analysis for the expected variability (risk) of returns, annual review of expected vs. actual position) I use an excel spreadsheet. But this is good enough for a "back of the envelope" calculation of your overall goal:

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