Investment Calculator
How do I use the retirement calculator?
Calculate your estimated retirement savings today.
Average rate of return (ROI) depends on the financial vehicle you use:
The S&P 500 has a 30-year return of roughly 12%.
Your savings account has an APY, this is your annual rate of return.
Certificate of deposits give you a guarantee at a lower percentage usually (3-4%)
Insurance policy will state rate of return.
Enter the amount you believe you’ll need for retirement:
The narrative surrounding retirement is to have a nest egg of $1 to $1.5 million. Or you should have 10 to 12 times your current income.
Don’t forget about…
Inflation
The rise in cost of goods and services.
The total inflation from January 1990 to December 2018 is 102.46%.
That mean something that costs $100 in January 1990, would cost $202.46 in December 2018.
Is your financial vehicle beating inflation?
(Avg Inflation rate 3.1%)
Taxes
You’ll pay taxes on any income you receive.
How can you limit the amount of taxes you pay?
Did you account for taxes in your retirement?
At 32%, after taxes $1,000,000 turns into $680,000.
