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Larry Krause, CFP® & Gisela Lake, CFP®

Portfolio Management Retirement planning


Got a question that involves number crunching? Use the calculators on this page to find the mathematical answer to the most commonly asked number-crunching questions, and see your inputs displayed next to the graph, chart, and/or table output in a side-by-side display.

Calculator: Print This Page
Retirement Savings Calculator
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*Years in retirement must extend beyond the year Social Security benefits start.

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*Or current age (up to age 70) if benefits already started

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*Enter the Social Security income that corresponds to the age entered for Social Security. You can obtain an estimate of your future Social Security benefit by going to http://www.ssa.gov/OACT/quickcalc/index.html

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This calculator estimates the growth of your retirement savings and calculates how long your savings will last based on your forecast of retirement expenses and income.


Assumptions:

Household income is your total gross household income, including your spouse's income. Your retirement savings are your total retirement savings, including both taxable and tax-deferred/tax-exempt holdings. Your retirement age is the first year that you do not make retirement savings contributions from household income and the first year you begin taking distributions from your portfolio.

The expected rate of return inputs are after-tax returns. Actual rates of return will be based on investments you hold in your retirement portfolio net of taxes and expenses.

The modeled Social Security income is based on your input for your Social Security income at the age entered for Social Security benefits. Subsequent years are inflation adjusted based on your input for inflation. Actual Social Security benefit payments in future periods are based on official government cost-of-living adjustments.

All contributions, income, and expenses are treated as occurring at the end of each year. This is a hypothetical example and is not intended to reflect the actual performance of any specific investment, nor is it an estimate or guarantee of future value. When making an investment decision, investors should consider their personal investment horizons and income tax brackets, both current and anticipated, as these may further impact the results of this comparison. This illustration assumes a fixed annual rate of return; the rate of return on your actual investment portfolio will be different, and will vary over time, according to actual market performance. This is particularly true for long-term investments. It is important to note that investments offering the potential for higher rates of return also involve a higher degree of risk to principal.

Retirement Savings Chart
These charts illustrate an estimate of Retirement Savings and Expected Contributions based on the supplied data and the assumptions that follow.

Based on the inputs above, your retirement savings and expected contributions will not provide all of your retirement income needs.
Your savings will be exhausted by age 94.

Assuming your household income grows by 1% until your retirement and given a target goal of 50% of your preretirement income, your first year retirement income need is $62,218.

Of this, an estimated $24,000 will be provided by Social Security. The rest of your retirement income need of $38,218 will have to be met through income provided by your retirement funds, and principal distributions.



    Assumptions

  • Household income is your total gross household income, including your spouse's income. Your retirement savings are your total retirement savings, including both taxable and tax-deferred/tax-exempt holdings. Your retirement age is the first year that you do not make retirement savings contributions from household income and the first year you begin taking distributions from your portfolio.
  • The expected rate of return inputs are after-tax returns. Actual rates of return will be based on investments you hold in your retirement portfolio net of taxes and expenses.
  • The modeled Social Security income is based on your input for your Social Security income at the age entered for Social Security benefits. Subsequent years are inflation adjusted based on your input for inflation. Actual Social Security benefit payments in future periods are based on official government cost-of-living adjustments.
  • All contributions, income, and expenses are treated as occurring at the end of each year.
  • This is a hypothetical example and is not intended to reflect the actual performance of any specific investment, nor is it an estimate or guarantee of future value. When making an investment decision, investors should consider their personal investment horizons and income tax brackets, both current and anticipated, as these may further impact the results of this comparison. This illustration assumes a fixed annual rate of return; the rate of return on your actual investment portfolio will be different, and will vary over time, according to actual market performance. This is particularly true for long-term investments. It is important to note that investments offering the potential for higher rates of return also involve a higher degree of risk to principal.
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 IMPORTANT DISCLOSURES

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

This communication is strictly intended for individuals residing in the state(s) of CA. No offers may be made or accepted from any resident outside the specific states referenced.
 


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