- Investment goal
- Your goal for the total value of your investment or investments.
- Years to accumulate
- The number of years you have to save.
- Amount of initial investment
- Total amount you will initially invest or have currently have invested toward your investment goal.
- Periodic contribution
- The amount you will contribute each period to your investment. You are also able to select whether you wish to have your contribution happen at the beginning or the end of the period.
- Contribution frequency
- The frequency you will make regular contributions to this investment.
- Compound interest
- Interest on an investment's interest, plus previous interest. The more frequently this occurs, the sooner your accumulated interest will generate additional interest. You should check with your financial institution to find out how often interest is being compounded on your particular investment.
- Make deposits at beginning of the period
- Check this box to have all additional contributions happen at the beginning of each period. Uncheck this box for the end of the period. Making contributions at the beginning of each period allows your money to begin earning a return immediately increasing your return.
- Rate of return on investment
- This is the rate of return you expect from your investments. You are also able to select the frequency that earnings are compounded in your investment account. The actual rate of return is largely dependent on the type of investments you select. For example, the total return including dividends of the S&P/TSX Composite Index for the 10 year period from December 31, 2013 through December 31, 2023 was 8.6% (source www.spglobal.com). Savings accounts at a bank or credit union may pay as little as 2% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.
- Expected inflation rate
- What you expect for the average long-term inflation rate.
- Marginal tax rate
- Your marginal tax rate.
