Tuesday, July 01, 2008

Long Term Financial Planning

This weekend my husband and I tried to do some long term financial planning. I have quite a bit of Excel knowledge gained from work, so I was busy working on a model, modeling our income growth over the next 30 years or so, taxes, and the effect of inflation. I also wanted to model our expenses, but we needed a lot more assumptions for that so I didn't get a chance to finish that. Based on my modeling and the assumptions I made (e.g. $15,500 annual tax deferred retirement contribution), we should be millionaires in our forties, assuming 6% growth in our investments. That's exciting, I hope it happens!