Retiree’s Tools and Calculators
J.P. Getty said, “People who don’t respect money don’t have any.” A key component of every financial plan is a retirement projection mapping out the type of lifestyle the retiree would like to enjoy, & how they are going to get their goals. This calculation depends on several key factors: the retiree’s current age, size of their nest egg, expected retirement date, desired lifestyle during retirement, & a projected life expectancy.
Interestingly, a majority of wealthy Americans said they’re concerned that they won’t have enough retirement income to last through their lifetimes, according to a 2010 Bank of America survey. The Bank of America survey said 53 percent are concerned about making sure retirement assets will last.
Over half of non-retired respondents made some adjustments to their lifestyles last year, such as spending less on personal luxuries or giving less to charities, & 29 percent said they expect to retire later than originally planned, the study said.
In a recent survey conducted on behalf of Merrill Lynch Global Wealth Management, retirees were asked where they would recommend those within ten to fifteen years of retirement focus their attention on retirement planning & where those over fifteen years from retirement should be focused:
Within Ten – Fifteen Years of Retiring:
• Generate a retirement plan around what is most important to you (51 percent).
• Have a retirement plan to manage income throughout retirement (47 percent).
• Pay down debt before retirement (40 percent).
• Account for unexpected costs & risks such as health care, cost of living and/or market fluctuations (38 percent).
• Pursue home ownership (24 percent).
• Be cautious of taking investment risks (21 percent).
More Than 15 Years Before Retiring:
• Generate a retirement plan around what is most important to you (43 percent).
• Pay down debt before retirement (41 percent).
• Have a retirement plan to manage income throughout retirement (39 percent).
• Account for unexpected costs & risks such as health care, cost of living and/or market fluctuations (38 percent).
• Work with a financial advisor if you don’t already (25 percent).
• Pursue home ownership (25 percent).
No doubt if you follow the financial advice of these retirees, you will do all right.
Being conservative when constructing a financial plan is critical — The assumptions made in your plan should always be conservative & achievable. Frequently updating the financial plan maximizes the probability the client’s goals will be achieved.
Other variables to think about are the rate of return the client’s investments can accomplish (both before & after retirement), how much the client can contribute to their nest egg before retiring, & the effects of inflation.
When it comes to getting a handle on your financial situation & gauging how much you will need to retire the Internet offers a buffet of retirement planning tools & calculators that can be helpful. A number of the best retirement planning tools & calculators are easy to use & don’t charge a fee.
Plenty of retirement calculators chart your retirement outlook & suggests ways to help you create a plan to reach your goals and/or projects whether your retirement-income needs will be met based on your retirement savings, other financial assets, & age.
There’s plenty of sites that you can utilize to figure out how much you need to save for retirement. First look at your Social Security Benefits on the Social Security government web-site you can estimate your future Social Security retirement benefits at different ages using different future earnings projection. http://www.ssa.gov/estimator .
Life expectancy planning is the next step in planning. http://livingto100.com The Living to 100 Life Expectancy Calculator uses the most current and carefully researched medical and scientific data in order to estimate how old you will live to be. Most people score in their late eighties… how about you?
www.tomorrowsmoney.org Wouldn’t it be nice to look forward to the future with confidence? Well, tomorrow is right around the corner. Take a few easy steps now and you and your loved ones will be able to enjoy a secure future with the money you’ve begun saving and investing today.
Everyone wants to look forward to their future with confidence, but it’s difficult to know how to save and invest until you know three things:
1. How much money you currently have
2. How much money you’ll need, and
3. What type of investments to look into given your own personal needs.
This calculator is the first step in helping you answer those questions and making the money you earn today work to build you a better tomorrow.
http://www.choosetosave.org/ballpark/index.cfm?fa=interactive This site was created by the Employee Benefit Research Institute, this financial website offers savings tips, retirement calculators, and links to retirement resources to help you plan your retirement.
http://cgi.money.cnn.com/retirement/tools
http://moneycentral.msn.com/personal-finance
http://finance.yahoo.com/retirement
http://www.walletpop.com/calculators/retirement .
http://screen.morningstar.com/IRA/IRACalculator.html
http://immediateannuities.com .
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