Starting balance
Initial balance that you have in your retirement accounts.
Annual contributions
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. This should reflect the
total you save toward your retirement. This should include
any 403(b), 401(k), or 457(b) plans and your employer contributions
to these plans. It should also include any other retirement
accounts such as an IRA or a Roth IRA and any retirement
savings in non-retirement accounts. This calculator assumes
that you make one annual contribution at the start of each
year, and any withdrawals happen once per month at the
beginning of each month.
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.
Rate of return before retirement
This is the annual rate of return you expect from your investments
before taxes. The actual rate of return is largely dependent
on the type of investments you select. From January 1970
to December 2007, the average compounded rate of return
for the S&P 500, including reinvestment of dividends,
was approximately 11.4% per year (source: www.standardandpoors.com).
During this period, the highest 12-month return was 61%,
and the lowest was -39%. Savings accounts at a bank may
pay as little as 1% or less.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
generally subject to higher risk and volatility. The actual
rate of return on investments can vary widely over time,
especially for long-term investments. This includes the
potential loss of principal on your investment. It is not
possible to invest directly in an index and the compounded
rate of return noted above does not reflect sales charges
and other fees that funds and/or investment companies may
charge.
Rate of return during retirement
This is the annual rate of return you expect from your investments
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. The actual rate
of return is largely dependent on the type of investments
you select. From January 1970 to December 2007, the average
compounded rate of return for the S&P 500, including
reinvestment of dividends, was approximately 11.4% per
year (source: www.standardandpoors.com). During this period,
the highest 12-month return was 61%, and the lowest was
-39%. Savings accounts at a bank may pay as little as 1%
or less.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 generally subject to
higher risk and volatility. The actual rate of return on
investments can vary widely over time, especially for long-term
investments. This includes the potential loss of principal
on your investment. It is not possible to invest directly
in an index and the compounded rate of return noted above
does not reflect sales charges and other fees that funds
and/or investment companies may charge.
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.
To increase deposits with inflation checkbox
Check this box if wish to have your annual contribution increased
each year to keep up with inflation.
If savings is tax deferred checkbox
Check this box if your retirement savings is being deposited
into a tax deferred account. This includes an IRA, 401(k),
403(b), governmental 457(b), variable annuity or other
tax deferred investment. |
