Another recent thread about retirement and how much is needed to have a comfortable retirement prompted this thread.
For those of you who want to get a fairly accurate estimate of how much you will need during your retirement I suggest using the free website below. I have used it for years and it is very simple to use but provides an INDIVIDUALIZED estimate.
It allows you to plug in your social security and/or pension along with your savings (401k, etc). You plug in what you estimate your total income need will be along with estimate of future inflation (I use 3-4% - low for today but over the years I think that is a fair average).
You also plug in your estimated average rate of return on your investments. I prefer to be conservative when I plug my rate in (4-5%) because my investments are now conservative since I am near my retirement.
The calculation then will show you year by year how long your money will last. Most financial planners suggest using at least age 90 unless your family history is much lower or you have pre existing medical conditiions. At any rate the calculation takes everything into consideration and shows your the result.
For those of you who want to get a fairly accurate estimate of how much you will need during your retirement I suggest using the free website below. I have used it for years and it is very simple to use but provides an INDIVIDUALIZED estimate.
It allows you to plug in your social security and/or pension along with your savings (401k, etc). You plug in what you estimate your total income need will be along with estimate of future inflation (I use 3-4% - low for today but over the years I think that is a fair average).
You also plug in your estimated average rate of return on your investments. I prefer to be conservative when I plug my rate in (4-5%) because my investments are now conservative since I am near my retirement.
The calculation then will show you year by year how long your money will last. Most financial planners suggest using at least age 90 unless your family history is much lower or you have pre existing medical conditiions. At any rate the calculation takes everything into consideration and shows your the result.
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