A hundred dollars into ten thousand
Three years, a starting hundred, a payment every month. Below is what the payment has to be, and how the ten thousand divides between the money you put in and the money the portfolio earned.
- A month, for 36 months
- $237.71
- Your own money in the target
- $8,658
- Added by the portfolio
- $1,342
| Return a year | Monthly | You put in | Earned | Share earned |
|---|---|---|---|---|
| 0% | $275.00 | $10,000.00 | $0.00 | 0.0% |
| 4% | $259.24 | $9,432.64 | $567.36 | 5.7% |
| 6% | $251.79 | $9,164.44 | $835.56 | 8.4% |
| 8% | $244.62 | $8,906.32 | $1,093.68 | 10.9% |
| 10% | $237.71 | $8,657.56 | $1,342.44 | 13.4% |
| 12% | $231.05 | $8,417.80 | $1,582.20 | 15.8% |
| 15% | $221.49 | $8,073.64 | $1,926.36 | 19.3% |
| 20% | $206.67 | $7,540.12 | $2,459.88 | 24.6% |
What the arithmetic says
The payment carries the plan
At ten percent a year the portfolio adds $1,343 of the ten thousand. The other $8,657 is money you paid in. A plan of this length reaches its number on the schedule of payments, and the return decides how much smaller the payment can be.
Then five percent a year
Ten thousand dollars paying five percent is $500 a year. Left in the account it compounds: $10,500 after a year, $11,025 after two, $11,576 after three.
What a missed payment does
Miss one payment and the target moves out by roughly a month. The plan screen keeps the schedule and the count of payments made, so the gap is visible rather than discovered at the end.
The two plans
Ladder 36
The saving plan: a hundred dollars, a monthly payment, a target in three years.
Ladder 36 Plus
The same target, a momentum core and a small coin sleeve.