- 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 age 64.
- Annual contribution
- The amount you
will contribute to your retirement savings each year. This calculator
assumes that you make your contribution at the beginning of each year.
- Pre-retire
rate of return
- This is the annually
compounded rate of return you expect from your investments before
taxes. The actual rate of return is largely dependant on the type
of investments you select. For example, for the last thirty years
the average annual rate of return for domestic equity stocks has been
about 10%. Savings accounts at a bank pay as little as 2%. For the
purposes of this calculator taxation is not factored into the results.
- Post-retire
rate of return
- This is the rate
of return expected during retirement. It is often lower than the return
earned before retirement due to more conservative investment choices
to help insure a steady flow of income. For example, a balanced portfolio
of stocks and bonds may earn two to three percent less each year,
but would be less susceptible to dramatic stock market fluctuations.
- Current tax
rate
- Your current
marginal tax rate you expect to pay on your taxable investments.
- Retirement
tax rate
- The marginal
tax rate you expect to pay on your investments at retirement.
- Is this savings
tax deferred?
- Check this box
if you retirement savings is being deposited into a tax deferred account.
This includes an IRA, 401(k), Variable Annuity or other tax deferred
investment.
- Increase annual
contribution?
- Check this box
if wish to have your annual contribution increased each year to keep
up with inflation.
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