[this is a ymoyl update.]

i couldn’t help reworking the table to be more accurate:

jeff’s possible investment future
year savings + interest = year’s
contribution
total
capital
yearly
investment
income
monthly
investment
income
1 $12,000.00 $585.00 $12,585.00 $12,585.00 $602.19 $50.18
2 $12,000.00 $1,198.52 $13,198.52 $25,783.52 $1,233.74 $102.81
3 $16,000.00 $2,036.95 $18,036.95 $43,820.47 $2,096.81 $174.73
4 $16,000.00 $2,916.25 $18,916.25 $62,736.71 $3,001.95 $250.16
5 $16,000.00 $3,838.41 $19,838.41 $82,575.13 $3,951.22 $329.27
6 $16,000.00 $4,805.54 $20,805.54 $103,380.67 $4,946.76 $412.23
7 $16,000.00 $5,819.81 $21,819.81 $125,200.47 $5,990.84 $499.24
8 $16,000.00 $6,883.52 $22,883.52 $148,084.00 $7,085.82 $590.48
9 $16,000.00 $7,999.09 $23,999.09 $172,083.09 $8,234.18 $686.18
10 $16,000.00 $9,169.05 $25,169.05 $197,252.14 $9,438.51 $786.54
11 $16,000.00 $10,396.04 $26,396.04 $223,648.18 $10,701.57 $891.80
12 $16,000.00 $11,682.85 $27,682.85 $251,331.03 $12,026.19 $1,002.18

i changed two things: i’m calculating at 4-7/8% interest instead of 5%, and i’m taking account of the fact that my car loan will be paid in 03/2004, so i’ll have another $4,000/year free to invest. i added two new columns; “monthly investment income” is the real bottom line, and what i want to watch.

i keep getting a sneaking suspicion that my real monthly needs are around $500. i was looking at $1,000/month on the basis of the average expenditures of the last 6 months (minus the mortgage and car payment), but didn’t take into account the fact that i made a $2,000 downpayment on the car during that time. you can see the anomalous bump on the graph. in any event, i’m curious to see how i’ll be doing in 7 years.

the difference in interest rates continues to bother me. it’s a losing battle to earn 4-7/8% interest while paying 8.19% on the auto loan and 7% on the mortgage. at the end of this year, i should look into what i can do about cutting down the length of the auto loan. in a few years, when i’ve approached what could be an ultimate living income, i should put serious thought to the idea of pulling out of investing for a while and redirecting my savings toward paying off the mortgage asap. say i put 7 years into reaching my $500/month, then was able to pay off the mortgage in two more years… so many possibilities. back to normal after tax month.

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