Do you know when you will retire? Do you know how much money you’ll have at your current rate of saving? Answers to those questions differs for everyone we ask. There is no pat answer, but some online sites like AARP and Bloomberg provide simple retirement calculators to help you figure out how much money you’ll need. Just input your current age, current amount in your retirement fund, expected rate of retirement, anticipated retirement age, desired retirement fund balance and click calculate. The calculator will show you how much you need to contribute annually between now and your retirement date to reach that goal.
Here’s a quick example*.
Current age 50, expected retirement age 67
Current amount saved $50,000
Annual Rate of Return 5%
Total desired $1,000,000
To reach $1,000,000 by age 67, you would need to contribute $34,264.18 annually, using the Bloomberg* model.
Keep in mind this is a very simple calculation. There are many other factors and variables that go into how much you’ll have at retirement. Regardless, you’ll want to work with a trusted financial advisor – like the SFM Advisors’ team – to ensure that you are on the right path to retirement. Call us today at 206-386-5455 or send us an email. We can help you figure out where you are now, where you need to be and, most importantly, how to get there!
To your wealth,
Joe Maas, CFA, AVA, CFP®, ChFC, CLU®, MSFS, CCIM
President of Synergetic Finance