Copy this new Scenario to your Real Estate Financial Planner™ software:
SS 010 Investing $100,000 in Savings at Approx 2%/yr
You start with $100,000 invested in a savings account. The savings account has a default interest rate of 2% per year, but we use a separate Rule to change the interest rate on that account each month. The interest rate changes each month and will be different each time you run the scenario (since it is random and based on a random increase or decrease).
The Scenario you want to copy into your Real Estate Financial Planner™ software has the following:
- 2 Accounts (including
Default Cash Account)
- 0 Properties
- 1 Rules
Once it is in your account, you can view detailed Charts for dozens of variables and edit any of the assumptions for Accounts, Properties, and Rules to run your own what-if Scenarios.
You can change things like:
- Adjust how much money you start with in any Account
- Model variable stock, bond and real estate rates of returns
- Change how many Properties you buy and when you buy them
- Set your own personalized target monhtly income in retirement to indicate when you reach financial independence
- Model receiving social security payments when you reach a certain age
- See what happens if there is a market crash or correction for your stocks, bonds and/or your real estate
- Tweak price and rent appreciation rates for individual Properties or all your Properties
- Find out what happens if you pay off your mortgages early... with cash flow each month or only when you have enough to pay off the Property in full
- Use equity in
Propertiesyou own to cash-out refinance and buy more Propertiesor invest it elsewhere
- Model buying more Properties than you need then selling off any extras to pay off the remaining Properties to achieve your own user-defined financial independence number
- Evaluate your own safe withdrawal rate and see how it impacts your investment plan
- And much, much more...
- Modeled for 720 months (60 years)
- 15% effective income tax rate
- 3% inflation rate
- 4.875% mortgage interest rate
- 4% yearly safe withdrawal rate (SWR)
- $5,000 minimum target monthly income in retirement (MTMIR) in today's dollars
- $20,000 ideal target monthly income in retirement (ITMIR) in today's dollars
Summary of assumptions for the Account in this Scenario.
- Account Name: $100,000 Invested in Savings at 2%/year
- $100,000 starting account balance
- 2% yearly rate of return (at start)
- Asset Type: Cash
This scenario has no Properties.
These are the Rules included with this Scenario.
Set Value On Accounts
Ruleruns for the entire Scenario.
- Changes the value of Yearly Rate of Return on $100,000 Invested in Savings at 2%/year.
Ruleadds to the previous month's value of Yearly Rate of Return each month that it runs using a random number between -.25 and .25 with a standard deviation of 0.050 in discrete steps of 0.010.
- However, values can never be lower than 0.010 and never higher than 6.000.