Medicated Money

Wednesday, May 10, 2006

Are Any Of These Numbers Right?

I like to think as myself as someone who is fairly good with calculations and forecasting numbers based on certain assumed numbers. However, after our last post, I spent a good 2 hours last night starring into the darkness thinking if the calculations for our long term plan were right. We used all the ‘trendy,’ (read: basic) calculations to determine our numbers. Yet, something does not ‘feel’ right! So we are asking our ‘trusty’ readers to help correct or point out any oversight or miscalculation that we may have made in our forecasting. To help, here are our predicting numbers:

All of this based on 25% tax rate, and inflation was not included:

  • Pre-Tax: 403(b) currently at $43k, contributing at least $30k per year for 32 years, at 8% rate of returns, and 0.5% expense rate/year
  • Post-Tax: Investing $37,500 in investment vehicles, at 6% rate of return, for 25 years
    If possible, minus from total $8,000/year to Roth IRA’s, 8% rate of return, for 32 yrs

I recheck the numbers this morning, and everything seemed right. Maybe we feel this because to state these numbers is one thing, to actually produce these numbers is another.

Let us know if you see problems or oversights, though.


  • When I ran your 403(b) numbers through the retirement calculator at, I got just over four million for those accounts.

    I'm not sure how you're accounting for taxes in your taxabale account (since it could vary a lot based on if you are investing for dividends, if you hold your stocks a long time, etc.). So, I didn't calculate that. You might also want to check out the Motley Fool calculators at Motley Fool.

    By Blogger HoustonHedonist, at 5:18 PM, May 12, 2006  

  • Thanks MVR,

    You are correct in that my 403(b) numbers are off. When I plug in all the numbers again, I got $4,435,989.

    Not too sure how I got these numbers so mixed up, but I am going to edit the previous post!
    Thanks for your help!

    By Blogger Medicated Money, at 2:34 PM, May 13, 2006  

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