![]() The bottom line: If you get rotten returns early in retirement, you can quickly end up in financial trouble, even if average returns over your retirement are just dandy. ![]() What’s the problem with assuming the same return year after year? Check out, which drives home a key concept every retiree needs to grasp: sequence-of-return risk. If you have something akin to a 60% stock–40% bond portfolio, override the default investment returns: For the period both before and during retirement, plug in a 4% annual return and 2% for inflation. Still, it offers a quick look at your retirement readiness. You can quibble that the calculator is overly simplistic and easily abused: It presumes you earn the same return year after year, which is unrealistic, and delusional folks can make everything look rosy by assuming an absurdly high rate of return. You might start with the retirement planner from (named after a neighborhood in Minneapolis). But given all the uncertainty about market returns, take these projections with a grain of salt. If you want a better sense for how much you ought to save every month, by factoring in how far you are from retirement and how much you have already saved, try playing around with one of the many online financial calculators. To hit a 12% savings rate, you only need to sock away 9%, because you’ll get 3% from your employer. Suppose your employer matches your 401(k) contributions at 50 cents on the dollar up to 6% of pay. Similarly, if your employer makes a fixed or matching contribution to its 401(k) or 403(b) plan, you might be able to trim your savings rate. If your employer has some sort of traditional defined benefit pension plan, which will pay you income every month in retirement, you can likely save less. "It is a great calculator, but it isn't popular due to its extremely specialized audience," he said.AS A RULE OF THUMB, you should probably save 12% to 15% of your pretax income toward retirement. His least-used tool determines the gain or loss if you have repossessed personal property from a deferred payment sale. "Online calculators are valuable to our efforts to improve financial literacy among our members and one of the most popular parts of our website and mobile app."Įbert's favorite tool is the retirement planner because it gives one a solid estimate and only requires users to enter in eight numbers. "What our members like about the calculator is that it helps them quickly figure out how much house they can afford, which is essential when you take out a mortgage," said Michael Toner, who manages digital channels for Navy Federal. His most popular calculator is one that automatically generates an estimated amortization schedule for a mortgage. All of his calculators are available for free at and he personally answers user feedback by email. He estimates he builds a new financial tool about every other month for clients. Over the past few years, he has reworked his calculators so they function smoothly on mobile devices. "I like to keep the focus on one thing and do that one thing really well." "I enjoy solving problems and I've always been financially inclined since I was a kid," said Ebert, who declined to disclose how much he makes from. He is married, but preferred not to discuss his personal life. Personal Loans for 670 Credit Score or LowerĮbert, 48, mainly works alone in his home office, though he sometimes hires developers to help with big projects. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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