What's Your Ideal Retirement Withdrawal Rate? Plan. Save. Win! The Race to Retirement!
Retire On Track LLC.
If you are planning for retirement, your head is probably spinning with questions like these:
Fortunately, most of these questions can be answered painlessly through the use of a retirement calculator like Bob's.
How can I do a retirement calculation?
This question is easily answered by using Bob's free retirement calculator. The Retirement Calcualtor is easy to use and includes all these great features:
Will my money last throughout my retirement?
Retirement can span a third or more of your lifetime. Making your retirement portfolio last as long as your working life did, can be a challenge. By plugging a few simple numbers into the retirement calculator you can help answer this question in a snap.
How much money can I withdraw from my portfolio each year (retirement withdrawal rate)?
This is a crucial question to know the question to. If you withdraw too much, your money will not last your entire retirement. If on the other hand, you withdraw too little, then you may end up eating macaroni and cheese for dinner every night for no reason. It is also important to remember the U.S. government has placed minimum required distribution (MRD) requirements on many retirement instruments such as, 401(k)s, 403(b)s, and traditional IRAs. Entering different withdrawal scenarios into the retirement calculator is easy and its results are revealed instantly.
How should my money be allocated?
Unfortunately, many retirees make the mistake of putting all their money in "safe" investment, such as money market accounts and certificates of deposit. They take this action, because they mistakenly believe that once they retire, they should not take risk of any kind. Bob's free retirement calculator allows you to input any asset allocation you desire. You can change the allocation until you find the one that is right for your situation.
How will inflation impact my purchasing power?
Inflation has a withering affect on your purchasing power. Historically, the inflation rate has been about 3 percent. Thus, with just the average inflation rate of 3 percent, your costs double every twenty-four years. You can expect to spend as much time in retirement as you did when you worked. Therefore, you can expect to see your expenses double during your retirement years. Again the retirement calculator can show inflation's impact on your portfolio immediately.
How will management fees affect my portfolio's performance?
The latest feature added to Bob's Free Retirement Calculator is the impact management fees have on your plan. Usually, management fees account for roughly a one percent loss of your portfolio each year - though this percentage can be as high as 5 percent or more. One percent may not sound like a insignificant amount, until you consider that on a $500,000 portfolio, that means you will have to make $5,000 a year just to breakeven. A five percent management fee on that same $500,000 portfolio means you will have to make a whopping $25,000 a year to breakeven.
How do I keep up-to-date on the latest news impacting my retirement?
To keep informed about retirement topics, try our FREE newsletter . At no cost to join, you will receive a monthly newsletter full of financial information to inform and empower you to have a successful retirement. As an added bonus, we will include Bob's Free Retirement Calculator aa seen live on CBS TV.