If youre like most people thinking ahead to plan for your retirement, youll possibly have a handle on 2 of the 3 things you really want to know...
1. How much money will I need?
2. How much can I pay myself?
3. How long will it last!
Using the “Can I Retire?” app you can enter two pieces of the puzzle, and then calculate the third, trying and re-trying different scenarios until you find a combination that will work for you.
This seemingly straightforward set of calculations is not so simple because, on the one hand, your retirement nest egg will grow initially for some years before ultimately diminishing as funds to live on are drawn. On the other hand, the amount of funds drawn will need to increase each year to keep pace as the cost of living rises.
The calculations take these considerations into account and the results displayed to you in a table, month by month, year by year, for as long as your funds last. The calculations include growth in your invested funds calculated on monthly balances, and annual increases to your retirement income. As a starting point, default values have been set for the rates of growth and annual increases, but you can set these values to whatever level you are comfortable with. Additionally, it is possible to set aside a separate lump sum each year for holidays or for unexpected expenses like a new car, or health needs.
Enjoy “Can I Retire?” and use it to help you come up with the answers you need to plan for your retirement future.
Can I Retire? images and icons: Copyright (c) 2011 Oltro and its licensors. All rights reserved.