There are a few basic strategies for preretirement accumulation of wealth. Experts disagree on the exact order of a few items (pay off college loans first or start saving immediately, pay off credit card bills all at once or over time) but most all believe a few basic principles executed well may help create a successful retirement for you or anyone else following the formula.
Assuming you are starting your own wealth pile and not inheriting from someone else, start here:
Spend less than you make.
Open a retirement account either through work if they have a matching program or on your own through us or a Vanguard, TRowe Price, etc.
Put the maximum amount allowable per year into that account or if you won’t make that shoot for at least 10% of your pretax pay. Call us when you do this and we will celebrate with you.
Don’t stop contributing.
If you’ve maxed out yearly contribution call us. It’s time to become a client.
Retirement Calculator — calculate retirement age
This calculator easily answers the question "Given the value of my current investments and assuming future monthly investments of "X", at what age will I reach my retirement goal?"
The user enters their "Current Age", the "Monthly Amount Invested",the "Annual Interest Rate (ROI)" (annualized Return on Investment one expects to earn) and "Amount Desired At Retirement".
The calculator quickly calculates the user's retirement age and creates an investment schedule plus a set of charts that will help the user see the relationship between the amount invested and the return on the investment. The schedule can be copied and pasted to Excel, if desired.
If you need a more advanced "Retirement Calculator" — one that calculates many more unknowns and one that calculates assuming retirement income and not a final lump sum then try the calculator located here: https:/financial-calculators.com/retirement-calculator
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