|
|
|
 |
Use this calculator to help you create: 1) Your Number @ Retirement, the retirement portfolio value needed to provide expected withdrawals throughout your retirement years; and 2) Your Number Thru Retirement, the total of expected withdrawals from your portfolio during retirement. The Compass Settings are your Retirement Income Plan. See Definitions for explanation of each Compass Setting. Click the View Report button to create a view of your retirement savings balance and your withdrawals for each year until the end of your retirement.
|
|
|
Definitions
- Current age
- Your current age.
- Age of retirement
- Age you wish to retire. This calculator assumes that the year you retire, you do not make any contributions to your retirement savings. So if you retire at age 65, your last contribution happened when you were actually age 64. This calculator also assumes that you make your entire contribution at the end of each year.
- Household income
- Your total household income. If you are married, this should include your spouse's income.
- Current retirement savings
- Total amount that you currently have saved toward your retirement. Include all sources of retirement savings such as 401(k)s, IRAs, annuities and taxable accounts.
- Rate of return before & during retirement
- This is the annual rate of return you expect from your investments before taxes. The actual rate of return is dependent on the type of investments you select.
Expected return rates for managed portfolios are listed on the Your Number & Retirement Income Plan page at maddenfunds.com.
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. Of course, there is a risk of potential loss of principal on your investment.
- Percent of income to contribute
- The percentage of your annual income you expect to save to your retirement portfolio through your employer's retirement plan(s), plus your employer's expected contributions. Include in the percentage, expected savings to other accounts targeted for retirement, IRAs, annuities, taxable accounts, etc.
- Expected salary increase
- Annual percent increase you expect in your household income.
- Years of retirement income
- Total number of years you expect to use your retirement income
- Percent of income at retirement
- The percent of income earned during the last year of work that you think you will need at the start of retirement. You can change this amount to be as low as 50% and as high as 150%.
- Monthly pension(s)
- This is the monthly pension benefits you and your spouse (if you are married) expect to receive when you retire. This amount is not adjusted for inflation.
- Other monthly income
- This is the monthly net income you expect to receive from real estate and other investments that do adjust for inflation.
- Expected rate of inflation
- What you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has a long-term average of 3.1% annually, from 1925 through 2006.
- If you are married checkbox
- Check this box if you are married. Married couples have a higher maximum social security benefit than single wage earners.
- To include Social Security checkbox
- Check this box if you wish to include social security benefits in your retirement planning. Social Security is based on a sliding scale depending on your income, how long you work and at what age you retire. Social Security benefits automatically increases each year based on increases in the Consumer Price Index. Including a spouse increases your Social Security benefits by 1.5 times your individual estimated benefit. Please note that this calculator assumes that only one of the spouses work. Benefits could be different if your spouse worked and earned a benefit higher than one half of your benefit. If you are a married couple, and both spouses work, you may need to run the calculation twice - once for each spouse and their respective income. This calculator provides only an estimate of your benefits.
The calculations use the 2012 FICA income limit of $110,100 with an annual maximum Social Security benefit of $30,156 per year for a single person and 1.5 times this amount for a married couple. To receive the maximum benefit would require earning the maximum FICA salary for nearly your entire career. You would also need to begin receiving benefits at your full retirement age of 66 or 67 (depending on your birthdate). Your actual benefit may be lower or higher depending on your work history and the complete compensation rules used by Social Security.
|
The Internet's Best Financial Calculators! Put them on your website!
|
|
