Build Your Nest Egg for Your Future–an article about judging your retirement progress (Highly Recommended)
Is your saving rate, the total saved, and your retirement age in alignment? It’s critical you know. The tool available at Fidelity Investments may help in answering the questions. Click here to download and read my article which explains the tool and the importance of using it–including a link to the Fidelity analysis form. It includes a suggestion what to invest in for different outcomes and how to use the online form. The retirement age, monthly savings, standard of living expectation, and investment style are all adjustable. Change the variables to change the outcome. I highly recommend this tool.
Another retirement tool/calculator has been added which is designed to help determine if you have saved and invested enough to last through retirement. It takes you through determining likely budget needs, calculates the monthly payment in retirement and adjusts it for inflation. Adjustments are allowed for the withdrawal rate, age at retirement, projected portfolio growth rate, and more.
Do I have Enough? New Retirement Calculator – Simple version 1.11
My thanks to Mike Torbenson for creating this tool, and allowing it to be made available on this site.
In addition to the standard computations, this tool adjusts the outcome by taking into consideration inflation, economic downturns and their frequency, expected wage growth as well as portfolio growth, and cost of living adjustments to name a few. It’s the most comprehensive retirement tool I’ve seen. And it’s easy to use. Answer a series of questions and you have the answer. You may be aware I like to use spreadsheets for investment purposes. I only wish I had put this one together. I did add a few bells and whistles, with Mike’s permission, that help guide you when there might be a question about what data to enter.
The Internet is used to help answer the hard questions, like the inflation rate, how often does the economy take a swan dive and how far down is down? How long do you expect to live? Fill out an online questionnaire and you’ll find out—at least a suggested terminal age based on information you provide. How much are you likely to receive from Social Security and what cost of living increases are you likely to see? They’re all a key click away on the Internet when the tool is used. The result of the analysis is in numerical form as well as graphic and very revealing.