A free retirement calculator is now available online on financial websites where companies or investors are more than willing to help you calculate your retirement and at the same time, try to sell you on the idea of how to invest and make more money out of your retirement income.
Retirement is something none of us like to really think about much. However, those days will come and it is a lot better if one is prepared for them, financially and otherwise. In order to live comfortably in your retirement days you must start to calculate your retirement funds as soon as possible; no matter how young you are. It may sound cliché, but time flies and you will be glad you did think about retirement early.
Here are some questions you need to figure out in order to make use of a free retirement calculator:
- How much money do you think you can put each month towards your retirement? Typically you will be depositing this money into your superannuation account at work. However if you are self-employed, then you can use a SEP or KEOGH account which will have to be set up with your bank.
- What interest rate will this money bring you before and after retirement?
- You’ll need to estimate the inflation rate be as it affects both the buying power and your salary. Inflation has averaged about 4% over the last 10 years and a free retirement calculator will allow you to take these numbers in account.
- At what age do you think you will retire? This may or may not be up to you; in case you have saved enough money and want to retire early you can do that too.
These are some of the basic questions you will have to put down on paper before you should try to get a free retirement calculator. Once you have a fair idea for the above answers, there will be yet another set of questions which will be a lot easier and you may get some help from the provider of the free retirement calculator.
Thinking and planning your retirement at a young age is the single best thing you can do for yourself besides getting life insurance as this plan will show you the silver lining in every cloud. Frankly it does not have to be an emergency for you to have a great, even early retirement and enjoy the fruits of your decades of labor.
Filed under Financial Planning.