You need to plan your retirement from an early age so that you can achieve a financially secured life. Are you aware of the exact amount you need to save before you retire? This would definitely depend on your age and present financial situation. This article would help you to know your fiscal need as well as help you to make necessary modification.
1. If you are keen to make retirement planning then make use of the online financial calculator that might prove to be beneficial. There are many sites that have calculator that is user friendly as well as comprehensive. At the bottom of this page you can look for the link. You need to enter some general information for instance your age, current salary, and varied savings information. The calculator would calculate accordingly and determine if you are eligible to retire at the age you desire and if not what modifications you require to make.
2. While entering the information in the calculator you are required to give your present age and if you merge the plans then enter the age of your spouse. You will need to input your current salary, along with the age you wish to retire. The calculator assumes a life span of 85, a retirement age of 65 approximately, 3% hike in annual salary and draws an assumption that you might require 70% of your existing income at retirement. You can make necessary alteration according to your situation and use the default mode for these fields.
3. The next information that you need to feed in information and get a clear picture of the Social Security benefits. Even in this case you put the default information for benefits and the expected age limit when you can receive benefits or you can enter in your personal detail information. If you are expecting to receive a post retirement pension then you can even include this additional information in this slot.
4. Try to give detail information about 401K or 403B that is sponsored by your company. Make sure that you include the percentage of your contribution by mentioning the right amount. Ensure that you enter the exact sum you have in a personal IRA along with the contribution you make in a year. Money market and savings account needs to be included while you plan to enter the sum of your other savings account.
5. Next task is that you need to make a choice of the investment strategy that you have selected for your retirement funds. If you distribute your income in various investment plans and have the courage to invest in some high risk share then there are high chances that you can earn some hefty return.
6. At the end the calculator would display a result that goes as follows:
a. The amount you require each year during retirement.
b. The amount that is equated to when altered for inflation.
c. In order reach your retirement goals the amount of money that is required for your extra saving.
The above mentioned result would indicate under your present investment planning and the percentage of your chances of reaching your goal.
These six steps would help you to form an idea about the amount you require retiring in order to enjoy your post retired life.
Authors Bio – Kevin Craig is a financial writer associated with Oak View Law Group. He has helped many people with proper financial advice and suggestions.