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Retirement Calculator

Will you be ready when you hang up your hat? Calculate your projected wealth at retirement age and see if you are on track for financial freedom.

🏖️Your Plan

Conservative: 5-6%, Aggressive: 8-10%

Projected Nest Egg at Age 65
$0
Growth Period: 0 Years

How Much Do You Need to Retire?

The "magic number" for retirement is different for everyone, but a common rule of thumb is the 4% Rule. This rule suggests you should have enough saved so that you can withdraw 4% of your portfolio in the first year of retirement (adjusted for inflation thereafter) without running out of money for 30 years.

Example: If you need $60,000/year to live, you need a nest egg of $1.5 million ($1,500,000 × 0.04 = $60,000).

💡 Don't Forget Inflation

A million dollars today won't buy a million dollars' worth of goods in 30 years. When using this calculator, consider aiming for a higher number to account for the rising cost of living.

Key Factors in Your Retirement Plan

  • Savings Rate: The single most important factor. Saving 20% of your income is a strong goal, but even 10% consistent savings can build massive wealth.
  • Time Horizon: The longer your money has to grow, the more compound interest works in your favor.
  • Investment Returns: A diversified portfolio (stocks/bonds) typically yields 7-10% annually over long periods. Playing it too safe (cash only) can actually be risky due to inflation.

Investment Vehicles

Where should you put your savings?

  • 401(k): Employer-sponsored plan with tax benefits. Always match your employer's contribution!
  • Roth IRA: Contribute post-tax dollars now to enjoy tax-free withdrawals in retirement. Crucial for tax diversification.
  • HSA (Health Savings Account): Offers triple tax benefits and can be used as a stealth retirement account.

Frequently Asked Questions (FAQ)

When should I start saving for retirement?

Yesterday! Due to compound interest, a person who starts saving at 25 ends up with nearly double the wealth of someone who starts at 35, assuming equal annual contributions.

How much of my salary should I save?

Most financial planners recommend saving 10% to 15% of your gross income. If you want to retire early (FIRE), you may need to save 30% to 50%.

What if I start late?

It's never too late. If you are over 50, you can make "Catch-Up Contributions" to your 401(k) and IRA ($7,500 and $1,000 extra, respectively, in 2024/2025 limits). You may also need to delay retirement by a few years or lower your retirement lifestyle cost.