A simple retirement calculator could be a great tool for assisting you in planning your retirement revenue. It takes into account variables such as income, expenses, possible inflation, and other factors. These factors will have an effect on the standard of living you’re likely to have post-retirement. Nevertheless, not every retirement software is the same. Some important functions are necessary in order for retirement planning calculator to provide the best results. Let’s understand the features that you absolutely need.
Simple Retirement Calculator to Assess Returns on Investments
You should be able to enter information regarding the numerous future sources of income. This is a key feature to look for in any retirement planner calculator. It should allow you to account for each of your retirement strategies, and the income you expect to earn from them. These sources include pensions, Social Security revenue, and any other source of retirement income you have planned. The net figure you get should be exclusive of savings account withdrawals from 401(k)s and IRAs.
This retirement planner calculator feature will permit you to see the big picture much more clearly. For detailed information of the Social Security compensation, you can expect, you could check their website. It has a simple tool you can use. Some retirement calculators also give you advice on the viable investments you can make. They assist you on how to split your income and assets among these potential investment channels. You will also be able to assess the quality of each source of income and how reliable it is likely to be.
Simple Retirement Calculator to Assess Expenses
A simple retirement calculator should allow you to enter your specific estimated costs. You can expect that your expenses post-retirement are likely to be more or less the same as what you’re spending today. For instance, say you earn a net income of $60,000 per year after paying taxes. Of this amount, you set aside $10,000 for retirement. Accordingly, your expenses for a year are $50,000. Expect that you will need the same amount post-retirement also.
Rules of thumb ought to be avoided in favor of specific costs that you think you’ll incur. While the typical citizen might spend a certain amount of money on heath care treatment throughout retirement, you may invest far less if you’re healthy. On the other hand, you could spend much more when you have significant health issues. A rule of thumb amount would most likely cause an inaccuracy in projecting your future requirements when this happens.
Factor in Unexpected Income and Expenses
A simple retirement calculator should allow you to account for possible contingencies. Look for a tool which will allow you to account for potential home sales and potential revenue from a job that you take throughout retirement. Factor in possible business sales and any inheritances you might come into. Account for variations in your lifetime, long-term care costs (such as assisted-living facility costs), and so on. The more potential contingencies that you’re in a position to factor in, the clearer your future retirement scenario will be.
Assess Future Market Conditions
A simple retirement calculator should offer you the ability to modify economic situations. Could there be an additional stock market crash? What else does the future hold for the economic climate? Considering that the economy goes through boom and bust cycles all the time, such a feature is very helpful to have. This is because; your post-retirement income will depend on these factors. It is also very essential to plan for future inflation levels. When doing so, do keep in mind that it is impossible to rely on previous inflation figures to estimate future levels.
Another key feature that your online simple retirement calculator should consider is your age to date and your life expectancy. While it is not possible to estimate this figure, it is important to plan for a longer life span. You should also be able to estimate your income if you’re able to delay withdrawals from your Social Security and other savings accounts for a longer time. Remember, if you can delay withdrawals for a longer time, your savings are likely to grow bigger.
Calculators that Store Results
Look for a simple retirement calculator which will allow you to store your answers and results. This may assist you in saving time if you’d like to periodically modify the info you’ve typed in. You will need to do this from time to time to factor in the modifications in your life. The calculator should also be able to let you know if your expected income falls short of your expected expenses. It should present the required amount that you absolutely must invest to make up for the difference in the figures. Additionally, by using the calculator, you will be able to keep track of your performance much better. Simply because you can evaluate your current and previous results, and compare them carefully.
Where to Find Retirement Calculators
You can find free-to-use retirement calculators on many sites on the internet. Look for them on the websites of nonprofit organizations, and online financial magazines. Certain financial institutions also offer this facility on their websites free of cost. Others may allow you to use their online retirement income calculator only if you have made investments via their site. You also have the option of using the calculator on your employer’s investment plan site. Or, on the 401(k) plan site you have invested in.
Even though you may need to pay for a retirement planner calculator, it may be best to do so in the long run. Regardless of which retirement planner calculator you choose, it is advisable to talk to an economic professional. An expert can assist you if you are unsure about how to prepare for your retirement. This is one factor in life where it is definitely better to do too much than too little.
Leave a Reply