Available at the App Store and Google Play™
So, what does it take to get to your end game?
Here is the calculator which gives you the answer.
You decide—when do you want to retire? 1-40 years
Let’s say—40 years.
You get to name your retirement goal
The calculator says that you will need to invest:
$16,240 a year if you expect an after-tax return of 2%,
$7,890 a year at a 5% return,
$3,580 a year at an 8% return,
And $2,060 at a 10% return.
Quickly, change your plans—
If you want to retire in 20 years, with $500,000, then plan to invest $20,175 each year at 2%, $14,405 at 5%, $10,120 at 8%, or $7,940 at 10%.
You choose your annual income
You decide on $100,000
Now decide your Rate of Return:
At 2%, the calculator says you must accumulate $5,000,000 and your yearly required investment is $81,200.
At 5%, you must accumulate $2,000,000 and your yearly required investment is $15,780.
At 8%, you must accumulate $1,250,000 and your yearly required investment is $4,475.
At 10%, you must accumulate $1,000,000 and your yearly required investment is $2,060.
In a matter of moments, you can change your mind as to:
1. When you want to retire
2. How much you want to retire with
3. How much you want for an annual income
4. Your Rate of Return %.
And get your new retirement investment requirement.
Want to get a little more precise? Maybe you want to take a little more risk when you are investing and go for an 8% return but you want to get a little more conservative and count on a 5% return when you start withdrawing your retirement income. You get to choose your investment return % and your withdrawal return %.
Choose your retirement date—
Let’s say 35 years
Choose your Yearly Desired Income—
$25,000, $50,000, $80,000, or $100,000
Let’s say $50,000
Now choose your expected annual % return during your investment years—
Perhaps you want to go a little riskier in your investing years—8%.
And then choose your expected annual % return during your withdrawal years—
Maybe this is the time to be a little more conservative—5%.
What does the App Calculator say?
“If you invest $5,380 for 35 years, at 8%, you will accumulate about $1,000,000. Assuming an Annual Retirement Return of 5% (after-tax), you can withdraw $50,000 each year without disturbing your principal.”
Want to change your mind? No problem. Have at it.
What is “Future Value”?
Every dollar has a “future value”. If you want to Retire ASAP, you must take into account the future value of every dollar you spend. You may be choosing between a “stay-cation” or a trip to the South Pacific. The cost difference is $10,000 this year.
However, if you invest that $10,000 instead, in 40 years, you would have:
$22,100 at a 2% return,
$70,400 at 5%,
$217,200 at 8%, or
$452,600 at 10%.
So your real cost might very well be somewhere between $217,000 and $452,000. Food for thought.
Input any discretionary choices into the Future Values calculator and get an idea of how much that unnecessary expense is really going to cost you.