Illustrate the amount of money that will go through ones hands over the course of their lifetime as well as the total wealth potential those dollars represent had those dollars been invested. |
Let's take a look at our wealth potential and how our wealth potential is impacted over time with our expenses. These four in particular taxes, debt service lifestyle (which represents our standard of living) and finally what's left over to save. |
Study the worksheet that appears when the documentation button is clicked to gain an understanding of the math on this screen. The worksheet is calculated as follows: Column 1: Year Column 2: Previous Year Annual Income * (1 + Income Growth) Column 3: Column 2 * Savings Allocation Column 4: Column 3 + Previous Year Savings Balance at End of Year Column 5: Column 4 * Rate of Return Column 6: Column 4 + Column 5 Column 7: Column 2 * Taxes Allocation Column 8: Sum of Column 7 to date Column 9: ((Previous Year Taxes at Opportunity + Column 7) * Rate of Return) + Column 7 Column 10: Column 2 * Lifestyle Allocation Column 11: Sum of Column 10 to date Column 12: ((Previous Year Lifestyle at Opportunity + Column 10) * Rate of Return) + Column 10 Column 13: Column 2 * Debt Service Allocation Column 14: Sum of Column 13 to date Column 15: ((Previous Year Debt Svc at Opportunity + Column 13) * Rate of Return) + Column 13 Column 16: Current Age + Column 1 |