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Retirement Planner

Visualize your future. See if your current savings and contributions are enough to maintain your lifestyle in retirement.

How much do I need to retire?

A common rule of thumb is the 4% Rule. This rule suggests that you can withdraw 4% of your total retirement portfolio in the first year of retirement, and then adjust that amount for inflation every subsequent year, without running out of money for at least 30 years.

Example: If you need $60,000/year to live (excluding Social Security), you would need a portfolio of approximately $1.5 million ($60,000 / 0.04).

Why does inflation matter?

Inflation erodes the purchasing power of your money over time. $1 million today will not buy $1 million worth of goods in 20 years. Our calculator includes an "Inflation Adjusted" line (orange dotted line) to show you the real value of your future savings in today's dollars.

Frequently Asked Questions

What is a good annual return rate?
Historically, the S&P 500 has returned about 10% annually before inflation. However, for planning purposes, many advisors recommend using a more conservative 6-7% to account for inflation and market volatility.
Should I count Social Security?
Yes, Social Security can provide a significant portion of your retirement income. However, it's generally safer to treat it as a "bonus" buffer or to estimate it conservatively, as future benefit amounts may change.

Understanding Retirement Accounts

Where you save is just as important as how much you save. The US tax code provides several "wrappers" that can significantly boost your final balance through tax savings.

Pre-Tax (401k / Traditional IRA)

You get a tax break today but pay taxes when you withdraw tomorrow.

  • ✓ Lowers your taxable income now
  • ✓ Compounds tax-deferred
  • ⚠ Withdrawals taxed as ordinary income

After-Tax (Roth IRA / Roth 401k)

You pay taxes today, but withdrawals are 100% tax-free tomorrow.

  • ✓ Principal and earnings grow tax-free
  • ✓ No taxes on withdrawals after 59½
  • ⚠ No tax deduction on contributions

Expert Tip: The Retirement "Waterfall"

Many financial experts suggest contributing in this order:

  1. Company Match: Never leave free money on the table. Contribute enough to get the full 401(k) match.
  2. Max Out HSA: If eligible, a Health Savings Account is "triple tax-advantaged" (tax-free in, tax-free growth, tax-free out for medical).
  3. Max Out Roth IRA: Provides flexibility and tax-free income in retirement.
  4. Back to 401(k): Increase contributions until you reach the annual limit.