What are you saving for this year, a house, a car, or maybe a boat? Whatever your savings goal may be, have you thought about developing a plan to actually make that happen? If not, this is the blog for you. Our bank at the Lake of the Ozarks is here to give you a few helpful tools and terms to use and think about when it comes to meeting your savings goals, in this week's blog. If you would like to learn more about the Free Kasasa Saver® we offer that helps you build your savings automatically, please give us a call today. First Bank of the Lake can be reached at (573) 348-2265.
Savings Goal Calculator
Planning a sabbatical? Saving for a down payment on a house? What will it take to reach your financial goal? Check out our Savings Goals Calculator to help you find out.
It’s easy, Just enter in your savings plan and view graphically your financial results. Click the view report button to get more information about your plan, and what you can do to help ensure that it is on track.
Below
are some handy definitions to help you understand how to meet your saving
goals.
Savings goal
The amount you wish to have in savings at the end of this savings plan.
Target years to save
The number of years you have to save.
Amount currently saved
Total you currently have saved toward this savings goal.
Monthly savings
The amount you will contribute each month to your savings. This calculator also assumes that you make your contribution at the beginning of each month.
Expected rate of return
This is the annually compounded rate of return you expect from your savings or investment. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2020, had an annual compounded rate of return of 13.8%, including reinvestment of dividends. From January 1, 1971 to December 31st 2020, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.8% (source: www.spglobal.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge.
Expected annual inflation rate
This is what you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI). From 1925 through 2020 the CPI has a long-term average of 2.9% annually. Over the last 40 years the highest CPI recorded was 13.5% in 1980. For 2020, the last full year available, the CPI was 1.2% annually as reported by the U.S. Bureau of Labor Statistics.
* Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
Meet Your Savings Goals With First Bank of the Lake!
Your savings needs are important and we want you to MEET your goals. If you've got a goal in mind, but you're not quite sure how to get there, please give us a call. We are more than willing to walk you through different savings accounts and tools we offer that can help get you there! Call (573) 348-2265 today. Be sure to follow us on our social media channels listed below to stay up to date on our latest savings products and tools.
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