Retirement Projection
Your Retirement Outlook
Projected Balance at Retirement
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Required Balance for Goals
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Accumulation Phase (Now to Retirement)
Years until retirement:
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Total contributions:
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Investment growth:
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Balance at retirement (today's dollars):
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Withdrawal Phase (Retirement)
Years in retirement:
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Annual withdrawal needed:
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Social Security income:
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Withdrawal from savings:
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Final balance at life expectancy:
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Retirement Income & Expenses
Portfolio Balance Through Life
Help
What is the 4% Rule?
The 4% rule is a retirement withdrawal guideline:
- Withdraw 4% of your portfolio in the first year
- Adjust that amount for inflation each subsequent year
- Historically, this has a 95% success rate over 30 years
Example: $1,000,000 portfolio → $40,000 first year
This calculator defaults to 4% but allows you to adjust based on your risk tolerance.
How Much Do I Need to Retire?
A common rule of thumb: 25 times your annual expenses
This comes from the 4% rule (100% ÷ 4% = 25)
Examples:
- Need $40,000/year → $1,000,000 portfolio
- Need $60,000/year → $1,500,000 portfolio
- Need $80,000/year → $2,000,000 portfolio
Don't forget to subtract Social Security and other guaranteed income!
What's the Impact of Inflation?
Inflation erodes purchasing power over time. At 3% annual inflation:
- $50,000 today = $67,196 needed in 10 years
- $50,000 today = $90,306 needed in 20 years
- $50,000 today = $121,363 needed in 30 years
This calculator accounts for inflation in all projections.
When Should I Take Social Security?
Age 62 (Early): Reduced benefit (~70% of full amount)
Age 67 (Full Retirement Age): 100% of benefit
Age 70 (Delayed): Maximum benefit (124% of full amount)
Break-even: Delaying is better if you live past ~80-82
Consider: health, longevity, other income sources, survivor benefits
What About Taxes in Retirement?
Different accounts have different tax treatments:
- Traditional 401(k)/IRA: Withdrawals taxed as ordinary income
- Roth IRA/401(k): Qualified withdrawals are tax-free
- Taxable accounts: Capital gains rates (usually lower)
- Social Security: Up to 85% may be taxable
Strategy: Withdraw strategically to minimize taxes (fill lower brackets, use Roth for large expenses)
What if Markets Perform Poorly Early in Retirement?
This is called "sequence of returns risk" - it's a major retirement planning concern.
Mitigation strategies:
- Keep 2-3 years expenses in cash/bonds
- Be flexible with withdrawals during downturns
- Consider working part-time early in retirement
- Use dynamic withdrawal strategies (reduce in bad years)
How Can I Catch Up if I'm Behind?
Strategies for late starters:
- Maximize contributions: Use catch-up contributions (age 50+)
- Delay retirement: Each extra year working makes a huge difference
- Delay Social Security: Increases benefit 8% per year
- Reduce expenses: Need less = need less savings
- Work part-time in retirement: Reduces withdrawal needs
- Be more aggressive: Higher stock allocation (if time permits)