Elijah James asked: You are middle aged, and retirement seems far away for the moment, but in this current economical crisis, will there be a future for your retirement? This and other concerns are starting to settle in the minds of middle-aged Americans today. With Social Security in the balance, banks being closed, and people losing their 401K accounts, it’s time to start looking much deeper ahead than we first realized. Using a Basic Retirement Calculator can give an idea of what you need to do today for a comfortable retirement tomorrow.
Living on a budget is what many Americans have to endure these days. Prices are going up on the staple of existence. Food, mortgages, and gasoline have all hit high marks, with no indication that it will get better. Businesses are closing down, and many people who thought they were secure are now losing their homes and pensions. Frightening as this all sounds, there is a way to secure at least enough funds to get us through our retirement years.
The next step is to use the basic retirement calculator for what is needed now for retirement later. There is a simple method of calculating a goal and current income. For example, if you would like to have at least a $45,000 annual retirement income, and you project no house payments by that time, then you have to look at your present income, monthly contributions, payments and tax for the projected retirement age. If you already have IRA or 401K accounts that are secure, then you will have even more monthly payments upon retirement. Savings and brokerages are also put into the calculation under current retirement assets. Any accounts that are tax-advantaged give much needed leverage when considering retirement income.
Consider any pensions and, of course, Social Security payments that will be given at retirement age. Expected inflation during retirement is another issue to consider. Projecting this number from historical rate increases gives an idea for the future, but not completely reliable. Calculating your current retirement assets can give an idea of what you will have after retirement from your accounts. A rate of return for any of your portfolios that are high risk/high return can be toned down once retirement is on the horizon. That way you have them to draw on when needed without fear of loss.
Sale of real estate or any other one-time income should also be entered into the basic retirement calculator. This will affect your monthly amount, but could also lend a hand as being a much-needed emergency nest egg. An after retirement job may be necessary to supplement your income, and many retirees choose to work after retirement as a rewarding experience anyway.
Looking to the future is important if you need to be secure in your retirement. What happens today will reflect on your quality of life tomorrow. A Basic Retirement Calculator online can help you see immediately what you need to do to have a comfortable retirement.
Christopher
