I invested $1,000 into Fist State Bridge Fund and $1,500 into Aberdeen Global Emerging Markets Fund. My ultimate goal is to accumulated $200,000 in 25 years time (each fund will generating about $100,000). I have worked out a value averaging investment plan and will contribute certain amounts of money into each fund on quarterly basis.
I post my detail investment plan here, which involves complicated value averaging formula calculation in order to determine the investment amount. I will not explain this formula in detail here, but I will constantly update my portfolio performance and my contribution details here.
| Fund Name: Fist State Bridge | ||
| Projected Annual Reture: 6% | ||
| Projected Annual Inflation: 4% | ||
| INPUTS | ||
| Investment Goal | $100,000.00 | |
| Value Now | $1,000.00 | |
| Period to Go - n | 100 | |
| Expected rate of return - r | 1.50% | |
| Increasing perodic contribution - g | 1.00% | |
| OUTPUTS | ||
| R | 1.25% | |
| Final Period - T | 103.6 | |
| Time Index Now - t | 3.6 | |
| Investment Amount - $C | $266.58 | |
| Value Path (T) = $C x t x (1+ R) ^ t | ||
| VALUE PATH | ||
| Periods From Now | Time Index # | Value Path |
| 0 | 3.6 | $1,000.00 |
| 1 | 4.6 | $1,294.72 |
| 2 | 5.6 | $1,596.65 |
| 3 | 6.6 | $1,905.92 |
| 4 | 7.6 | $2,222.68 |
| - | - | - |
| 98 | 101.6 | $95,662.75 |
| 99 | 102.6 | $97,811.98 |
| 100 | 103.6 | $100,000.00 |
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| Fund Name: Aberdeen Global Emerging Markets | ||
| Projected Annual Reture: 8% | ||
| Projected Annual Inflation: 4% | ||
| INPUTS | ||
| Investment Goal | $100,000.00 | |
| Value Now | $1,500.00 | |
| Period to Go - n | 100 | |
| Expected rate of return - r | 2.40% | |
| Increasing perodic contribution - g | 1.00% | |
| OUTPUTS | ||
| R | 1.70% | |
| Final Period - T | 108.8 | |
| Time Index Now - t | 8.8 | |
| Investment Amount - $C | $146.81 | |
| Value Path (T) = $C x t x (1+ R) ^ t | ||
| VALUE PATH | ||
| Periods From Now | Time Index # | Value Path |
| 0 | 8.8 | $1,500.00 |
| 1 | 9.8 | $1,698.71 |
| 2 | 10.8 | $1,903.74 |
| 3 | 11.8 | $2,115.25 |
| 4 | 12.8 | $2,333.40 |
| - | - | - |
| 98 | 106.8 | $94,907.60 |
| 99 | 107.8 | $97,424.72 |
| 100 | 108.8 | $100,000.00 |
