Retirement Snapshot Calculator
My Gift to You:
The information below is the instructions for the use of the calculator for those who may want to connect about their retirement concerns.
Congratulations! The financial calculator will provide a very basic, “snapshot” of not only your current financial picture but more importantly where you are heading relative to your own retirement goals. Its creation came as a result of lunchtime discussion with many affluent clients over the years that at some point, one question would arise. Respective to wealth, “When is enough/enough? The document is available to help you shape your own financial future so that you too may know the very same answer.
To help you complete the document please know that the yellow cells are for you to provide the numerical values for each question.
Estimated cost of living (Monthly)
This will be the sum total of all monthly costs you now spend each month to live your life. House/car payments, food, clothing, etc.
Estimated cost (annually) of travel and enjoyment costs.
Place here what you believe you spend each year for the costs of vacation, travel, sporting events, etc.
The form will calculate those costs and annualize the totals.
Current savings (to date)
Place the total of any cash on hand or what I would refer to as liquid savings.
Investments (to date)
This will be the total of any long-term retirement accounts.
The calculator will now show you that if you were to begin living now on those sums how many months could you support yourself.
Age/Retirement
Provide your current age and the age you have decided to be your retirement goal. The form will show you how many years you have remaining to work, thus how many years you have to acquire the retirement sums necessary to provide funding at your retirement date.
Estimated retirement contributions
Next, provide the amount you are currently saving each month or what your monthly savings goal could become. The form will calculate those monthly sums and will annualize them over your remaining years you wish to work. The form then combines those dollars with your current savings and will provide you an updated total at your retirement date.
REMEMBER, these values are at this point in time and do not consider various factors such as interest rate returns, market gains/losses that may impact your progress over time as you work through the years until retirement. It also does not consider any other income sources such as Social Security, pension plans or other outside sources. Remember this is only a current snap shot at a point in time. Lastly, be sure to seek an investment advisor for any investment decisions.
Once completed, if you’ve discovered that you do have the sufficient investment sources looking ahead toward retirement, congratulations!! If, however your projections are less than expected you may use and reuse the calculator to continue to explore and increase the monthly sums to determine at what level you would need to increase your monthly savings to reach your investment needs.This is my gift to you and you may also use it to share with others who are also on their own financial journey.
If, based upon your current ability to save toward your retirement goals you are unable to reach your goals, you may want to consider other outside income sources such as a side hustle which may be a topic to discuss. If that is of interest to you and you would like to dialogue about that avenue, I am happy to connect.