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I love optimistic retirement calculators

January 20th, 2007 at 01:18 pm

This one: http://finance.yahoo.com/calculator/retirement/ret-02
says that I need to save between 3.4 and 7.1 percent of my gross salary to have a comfortable retirement, not counting social security or anything.

Not that I believe it, of course.

Right now I'm saving 15%, though I'm not quite sure what will happen when, sometime next year, that amount begins to exceed the amount I'm able to put into a Roth IRA. I would like to open a taxable mutual fund account in a tax-efficient index fund, but I worry that the small amount I'm able to invest in it every year would make it not worth the fees. After the Roth limit goes up to $5000, I would only be able to invest $1000/year outside of it, and not only does the fund I'm considering have a minimum of $3000, but it has low-balance fees up to $10,000. Only $10/year, but, you know, it adds up.

We'll see; it's not something I have to consider seriously at the moment.

And no, no 401(k) at work. If that becomes available within the next two or three years, that could change my plans too.

4 Responses to “I love optimistic retirement calculators”

  1. campfrugal Says:

    Awesome calculator. I think it is more realistic than the ones I have been dealing with, and; yes, there is hope for me for retirement. Instead of saying I need half of mill, it says I only need around $200,000. To me, that is more attainable and I am already half way there. Cool.

  2. monkeymama Says:

    Actually that is one of the most accurate ones I have ever seen - nice link.

    I think the general rule of thumb I here lately is save 20%. That's what it predicted spot on and what I am saving. 20% for $4 mil at age 65 to live on (I assumed a much lower rate of return when reitiring though & that we would live longer too).

    I like how it indexed salary for inflation and present value of my salary at 65, etc.

    OF course personally to me 20% is the very least I would save. Will save much more.

    I thought it was a good tool though overall - showing how if you wait longer to start saving, you have to save more every year.

  3. E. Says:

    Seen this?
    ttp://www.nytimes.com/2007/01/27/business/27money.html?em&ex=1170046800&en=a25e7d6c72b62252&ei=5087%0A

  4. Deepak Kloos Says:

    Hi guys,
    For all interested in retirement calculators, we have developed our own by working with nationally recognized independent financial advisers, as well as a professor at MIT who is a leading expert on consumer behavior around retirement. Currently, we are working with Duke and MIT to do research on how to better motivate consumers to save for retirement.
    Check it out: [url]www.boulevardr.com

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