Contribution adjustment

The Plan: I am thinking to increase my monthly contribution to $1000 in the DFC fund.  The amount still reflects a typical car payment - e.g. a car payment for a BMW X5, retail price of 55k, is $1k per month for 6 years at 3% interest.  If I adjust my car fund to a $1000 contribution level, I predict** that my fund will reach the following goals over the next 6 years:

·         06/2017 – $17.5k

·         06/2018 – $32k

·         06/2019 – $46k

·         06/2020  –  $63k

·         06/2021 – $81k

·         06/2022 – $100k (a 5-year old BMW X5 is worth about $20k)

The Result: A DFC fund at $100k, without further contributions, would provide enough in growth to purchase a $30k car every three years without hurting the principal and the fund's prior growth.

** - assumption that the market returns at least an average of 8% each year.