Passive Investment Calculator

Passive Investor Calculator

(Enter the values below and discover an estimate of your final investment balance)

Start balance (in Dollars): Monthly contribution (in Dollars): Average return rate (% per month): Duration (in months):

Formula:

Note: Calculations are based on the future value formula with regular contributions:

FV = InitialValue*(1+rate)^time + ContributionValue*((1+rate)^time-1)/rate

FUTURE VALUE FORMULA: ESTIMATE THE RETURNS OF YOUR PASSIVE PORTFOLIO

Future value: estimated end balance Starting balance: the initial amount that you are investing (if any). Contribution: the monthly contribution to your investment portfolio Return rate: the average monthly return of your portfolio. Time: duration of your investment.
In the calculator below, we estimate in about 1 Million the end balance of a portfolio, starting from $1000, with monthly contributions of $1000, for 240 months (i.e 20 years) and returning 1% per month, on average.

HOW TO MAXIMIZE RESULTS (even with low initial investment)

Contributions:

Increase the amount of each contribution.
Increase the frequency of contributions.
Contribution to assets (or asset classes) that have a current distribution lower than the original distribution.

Time:

Invest for as long as possible.
Don't make unnecessary rebalancing (or portfolio rotation).

Return rate:

Aim to get the highest possible (and somehow stable) rate of return for the level of risk your portfolio is exposed to.
Minimize administration and brokerage fees.
Try to avoid unnecessary/upfront tax payments (on capital gains, for example).

Investor Profile Questionnaire

What do I consider my investor profile:

I don't know

Conservative

Moderate

Aggressive

Financial goals:

Preserve capital

Protect against inflation

Generate passive income

Grow capital

Financial situation:

I have significant debts

I don't have out-of-control debts and/or I have little wealth

I don't have debts and/or I have significant wealth

Experience with investments:

I don't know / Only savings

Fixed income / I invest more in fixed income than variable

Only variable income

Time horizon:

Short term

Medium term

Long term

Risk tolerance:

Risk-averse

Tolerant of low risks

Tolerant of medium and high risks

Reaction to a market downturn:

Would sell positions

Would wait to decide

Would do nothing

Would buy more

WHO WE ARE:

TRENDSET Financial Education.
www.trendsetconsulting.com/en
Hamilton, New Zealand
arthur@trendset.com.brPodcast: anchor.fm/TRENDSETConsulting

Made in New Zealand from important and local ingredients.
©2000-2024. All rights reserved.

CONTACT:

TRENDSET Financial Education
www.trendsetconsulting.com/en
New Zealand
amvn@trendset.com.br twitter: @ArthurVallePhD

Made in New Zealand from important and local ingredients.
©2000-2024. All rights reserved.
Disclaimer: The information on this website is provided for educational purposes only. TRENDSET does not assume any responsibility for giving legal, investment or other professional advice and disclaims any liability arising from the use of the information. If you require legal, investment or other expert advice, you should seek assistance from an authorised financial adviser.