1 PowerPay Power Save July 2009 1. 2 Marsha A. Goetting Ph.D., CFP ®, CFCS Professor & Extension Family Economics Specialist Department of Agricultural.

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Presentation transcript:

1 PowerPay Power Save July

2 Marsha A. Goetting Ph.D., CFP ®, CFCS Professor & Extension Family Economics Specialist Department of Agricultural Economics & Economics Keri D. Hayes Publications Assistant Department of Agricultural Economics & Economics 2

3 PowerSave Web site (Utah State University-Extension) 3

4 Choose Montana 4

5 User Login If new member, click [New? Sign up now] 5

6 Screen that Appears Enter New User Information, Click Submit 6

7 PowerSave Project future value of savings  Compare different PowerSave options 7

8 PowerSave Options 1. Fixed savings payments 2. Invest a lump sum 3. Reach a savings goal 4. Withdraw for a specified time 5. Withdraw a specified amount 8

9 Click PowerSave Tab 9

10

11 Fixed Savings Payment 11

12 Fixed Savings Payment Save regular amount at fixed interest rate & period:  How much will be earned? 12

13 Click on Fixed Savings Payment 13

14 Saving Frequency Annually Semi-annually Quarterly Monthly Two weeks Weekly 14

15 Example: Save $100 monthly, 10 years Initial Balance (optional)0 Deposit Amount100 Frequency of DepositMonthly Time Period (Years)10 Time Period (Months)0 Annual Interest Rate5 Compounding PeriodDaily Estimated Inflation Rate3.5 Calculate 15

16 Results: Save $100 monthly, 10 years Total Deposits$ Total Interest$ Ending Value$ Ending Value Adjusted for Inflation $

17

18 Fixed Savings Payment Summary Use when want to determine how much I’ll have if I save a fixed amount at fixed interest rate for fixed time period. 18

19 Invest a Lump Sum 19

20 Invest a Lump Sum For a given time  Months/years Interest Rate How much will be earned? 20

21 Click Invest a Lump Sum 21

22 Example: Invest $2,000, 10 yrs Deposit Amount2000 Time Period (Years)10 Time Period (Months)0 Annual Interest Rate3 Compounding PeriodDaily Estimated Inflation Rate3.5 Calculate 22

23 Results: Invest $2,000, 10 yrs 3% 3.5 Inflation Total Interest Ending Value Ending Value Adjusted for Inflation

24

25 Invest a Lump Sum Summary How much will I have if I invest a lump sum for fixed period of time 25

26 Reach a Savings Goal 26

27 Reach a Goal How much must be saved regularly at a fixed rate to reach savings goal? 27

28 Click Reach a Savings Goal 28

29 Example: Goal $20,000 in 5 yrs Initial Balance (optional)0 Goal Amount20000 Frequency of DepositMonthly Time Period (Years)5 Time Period (Months)0 Annual Interest Rate3 Compounding PeriodDaily Estimate Inflation Rate3.8 Calculate 29

30 Results: Goal $20,000 in 5 yrs Amount to save monthly to reach goal $ Goal amount adjusted for inflation $ Goal amount adjusted to match the today's value adjusted for inflation $ Amount to save monthly to reach goal amount matching today's value $

31

32 Reach a Savings Goal Summary How much must I save regularly at fixed rate to reach my savings goal? 32

33 Withdraw for a specified time 33

34 Withdraw for a specified time How much can I withdraw from a lump sum if I want it to last a specific amount of time? 34

35 Click Withdraw for a Specified Time 35

36 Example: Withdraw for a Specified Time Initial Amount Frequency of WithdrawalMonthly Time Period Years25 Time Period Month0 Annual Interest Rate3 Compounding PeriodDaily Estimated Inflation Rate3.8 Calculate 36

37 Results: Withdraw for a Specified Time Withdraw Amount$ Last payment value adjusted for inflation $

38

39 Withdraw for a Specified Time Summary How much can I withdraw from a lump sum if I want it to last a specific amount of time? 39

40 Withdraw a specified amount 40

41 Withdraw a Specified Amount How long would a lump sum of money drawn down at regular intervals and amounts last? 41

42 Click Withdraw a Specified Amount 42

43 Retirement Monthly Income AgeMonthlyYearly 55 – 64$4,232$50, – 74$3,413$40, $2,409$28,904 43

44 Example: Withdraw a Specified Amount Initial Amount Annual Interest Rate6 Compounding PeriodDaily Estimate Inflation Rate3.8 Monthly Income Needed4232 Calculate 44

45 Withdraw a Specified Amount Results Monthly income will last 2 years 1 month Last payment value adjusted for inflation $

46

47 Withdraw a Specified Amount Summary If I withdraw a certain amount from a lump sum, how long will it last? 47

48 PowerSave Project future value of savings  Compare different PowerSave options 48

49 PowerSave Options 1. Fixed savings payments 2. Invest a lump sum 3. Reach a savings goal 4. Withdraw for a specified time 5. Withdraw a specified amount 49

50 PowerPay Power Save July