Click "OK" to logout. Click "Cancel" to remain logged in. This calculator can help you determine how much money you need to save for retirement. It's an important question that workers grapple with all the time -- how much do I need to save for retirement?
This retirement savings calculator can help you estimate what your retirement savings will be worth in the future. It will also help you determine how much more you need to save each month to meet your retirement goal.
If you plan to sell your home in retirement and move elsewhere, answer the following questions. If not, skip to Step 5. Be aware that the calculator does not take taxes on your retirement income into account so your spendable income will be less. The actual results will also depend on how much you contribute to your retirement accounts, how long you live and the returns on your investments. To better save for retirement, think through all of your options, such as contributing to a k , b , a traditional IRA or a Roth IRA.
For most retirees, there are other sources of retirement income besides savings, Social Security being chief among them. The common assumption is that some savings, in addition to Social Security and a less expensive lifestyle no more kids in the house, no more commuting costs will all add up to financial security in our sunset years. For some, that may turn out to be true, but such success stories are more a result of good luck than a sound retirement strategy. That phrase - sound retirement strategy - is where many of us lose interest.
It is loaded with negative connotations: expensive investment advisors, large stacks of documents and complex spreadsheets, to name a few. It can be boiled down to one simple question: How much do I need to save to retire? By putting away a percentage of your income every month from now until you retire, you can do away with the financial anxieties far too many seniors find themselves facing.
A retirement calculator can help. Do you hope to travel? To Paris, or someplace a little cheaper? How often do you want to eat out? Go to the movies? The beach? Do you want to move closer to the beach? The grandchildren? The important thing is to be realistic. While some costs will likely go down in retirement, others may go up. Specifically healthcare costs are likely to rise in retirement.
Plus, retirement is your reward for decades of hard work: treat yourself accordingly. Think of this figure as a mountain summit, reachable by several different paths. The answers to those questions will determine how much work you have to do to reach that mountaintop. After thinking it over, you decide that you would be comfortable living a lifestyle similar to your current one in retirement. Not bad! Getting an early start on retirement savings can make a big difference in the long run. You also plan on living fairly modestly once you retire, and think your budget will be a bit trimmer than it is today.
The Pittsburgh resident in the example above is right on track for a happy retirement. In the above scenarios, our hypothetical subjects kept their savings in one of a variety of retirement savings options, in either a savings account, a k or a traditional IRA. There are many ways you can invest the money you set aside for retirement, depending on your goals. The rate of return your money earns depends on the risk you are willing to take on, the success of your particular investment strategy and, to a certain extent, luck.
For example, an economic downturn can hurt your investments, at least in the short run. So too can changes in the inflation rate, and other economic events. All of which is to say: the unexpected can happen, and often does.
The best you can do is to develop a solid plan based on the information you have now. Don't let retirement savings statistics get you down.
A retirement calculator can help you see how you are doing so far and what you need to change to make your retirement goals.
By setting goals and meeting them, you give yourself the opportunity for a rich and rewarding retirement. What is an Index Fund? How Does the Stock Market Work? What are Bonds?
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Back to retirement tools Personal Retirement Calculator. Ready to get started? Select to Open an account. Retirement savings: The big difference a little extra can make. Get help prioritizing your goals. The results provided by the Personal Retirement Calculator PRC are intended for illustrative purposes only and accuracy is not guaranteed. The results should not be relied upon nor should they be deemed as investment advice.
IMPORTANT: The projections or other information generated by the Personal Retirement Calculator regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time. The Personal Retirement Calculator is provided by one or more third party service providers.
However, the information generated by the calculator is developed by Merrill to estimate how current savings and estimated future contributions may help to meet estimated income in retirement. The information estimates potential growth of your indicated assets and contributions over the time frame specified. The market return data used to generate the illustration is hypothetical and intended to provide you with a general idea of how an asset mix you selected might perform over time. The respective asset mix may be useful information, but is in no way representative of past performance of a particular investment, and is not representative of any future performance of any particular investment.
Numerous factors make the calculations uncertain, such as the use of assumptions about hypothetical returns and inflation as well as the data you have provided. Assumptions concerning inflation are for illustrative purposes only. Past performance is not a guarantee of future results. We encourage you to consult with qualified professionals to discuss your situation.
Bank of America Corporation and its affiliates are not tax or legal advisors. The PRC is not intended to offer any tax, legal, financial or investment advice and does not assure the availability of or your eligibility for any specific product offered by Bank of America Corporation, its affiliates or any other institution, nor does the PRC predict or guarantee the actual results of any investment product.
The terms and conditions of products offered by institutions will differ and may affect the results of the calculator. You shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Please consult with qualified professionals to discuss your situation. For more information on the calculations, review our Methodology and Assumptions section below. Methodology — How the Calculator Works Expand calculator methodology details. The Methodology, Assumptions, and Limitations of the Personal Retirement Calculator The information generated by the Personal Retirement Calculator was developed by Chief Investment Office CIO to estimate how current savings or investments and estimated future contributions may help to meet estimated financial needs in retirement.
This analysis is not a guarantee as your actual results may vary materially. Methodology — How the Calculator Works The calculator assumes two stages of wealth management: accumulation and distribution. The monthly and annual amount you are on track to have is expressed in today's dollars.
The total amount you are on track to have is expressed in future dollars at time of initial retirement and is adjusted for salary growth and inflation rate.
Asset Class Assumptions Our estimates for forward-looking returns for the major asset classes are shown in the table below. Large Cap Growth Large Cap Value Small Cap Growth Small Cap Value Government 3. Mortgages 3. Corporates 4. High Yield 5. The index proxies represented for equity, fixed income and cash are described below: Equity: U. It includes those Russell companies with higher price-to-book ratios and higher forecasted growth values. It includes those Russell companies with lower price-to-book ratios and lower expected growth values.
Fixed Income: U. At the end of the month that issue is sold and rolled into a newly selected issue. The issue selected at each monthend rebalancing is the outstanding Treasury Bill that matures closest to, but not beyond, three months from the rebalancing date. To qualify for selection, an issue must have selected on or before the month-end rebalancing date.
Conservative Moderate Mod. Social Security A full retirement age of 67 is assumed for Social Security benefits even if a different retirement age is specified.
Length of Savings "Savings may last until age: x-y. Action Plan — Increase in Monthly Contributions Increase in monthly contribution is calculated by taking the gap between your current progress towards your personal retirement number under poor market performance and average market performance and calculating how much you would need to save additionally every month to bridge that gap by your desired retirement age.
No Guarantee of Results Because the results of the tool's assumptions are based on numerous factors that make the calculations uncertain and because the tool does not take into consideration a number of important factors, whether you are deemed to have a shortfall or to be on track to reach your personal retirement number, neither Bank of America Corporation nor this tool can guarantee that you will have sufficient income or assets to meet your financial needs throughout your retirement.
Connect with us:. Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.
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