Retirement is something everyone in their life should plan for. It is a time when you can relax, and enjoy the golden years of your earthly existence. If you were in the service, it is definitely a good idea to begin planning for your retirement. Using a military retirement calculator is beneficial in figuring out your financial future. Here are the basics behind using a military retirement calculator that will help you plan ahead:
In order to use a military retirement calculator to figure out your future, you will need the following information: present age, age of retirement, household income, current savings for retirement, and pre and post retirement rate of return, percent of income to save, years until retirement, and years of retirement, marital status and expected rate of inflation.
Once you have all the necessary information, the next step is to enter it all into the military retirement calculator. The results will determine how much you are saving now, and how much you’re are withdrawing and saving until your retirement year. The results also come in a line chart, with your age on the X axis and the dollar amount on the Y axis. The plan will also estimate how much you can spend based on your current income in the thousand dollar amount. The total amount also includes money from Social Security.
The Next Step
The results will depend upon factors such as your marital status, and whether you live in a one or two income household. Although a military retirement calculator is helpful in doing a self-assessment of your financial status and goals, if you want to get a more accurate look at your retirement, you should consider going to a financial consultant regarding your military retirement planning.
After figuring out how much you will need for retirement, the best thing to do is to start saving. Look to the future as much as you can, and try to avoid getting into too much debt now, so you can live comfortably in the years to come. Assess how much you want to put in, how much you’ll need, and what can boost your savings and what can hinder it. Working to plan your retirement may be a chore presently, but when its time to enjoy the fruits of your labor, it will definitely pay off.
Filed under Financial Planning.