Practical Lessons for Your Financial Life (Collection)

7. Subtract the Difference Between What You Need for Your Ending Balance and What You Have Now

We call the figure we are about to calculate here “the Gap” because it’s the amount of money separating your current assets after 25 years of growth from the ending balance you will want to have at that time. This is the distance you have to make up with your savings rate and with how well you invest those funds. To arrive at the size of your gap, simply subtract the value that you predicted your current investment assets to have 25 years from now ($1,356,858) from the value you will need in your investment assets 25 years from now ($3,760,000). Simple arithmetic predicts the size of your gap to be $2,403,142.

Therefore, your current liquid assets, ...