Find out just how long your retirement fund will last.How much have you saved and what does that actually mean for your future? Use this calculator to see how far your savings will go. Greater Texas | Aggieland Credit Union offer a number of retirement accounts that can help you plan for your future and maintain your lifestyle after retirement. Learn More Show
Additional Calculators
APPLY ONLINE Select the account you would like to open APPLY ONLINE Select the account you would like to open APPLY ONLINE MortgagesSelect the account you would like to open APPLY ONLINE You are eligible if
What We Will Need From You
Learn More Something isn't loading properly. Please check back later. I’m retired, how long will my savings last?Making your savings last is essential in retirement. Find out how far you can stretch your nest egg if you make regular withdrawals. Once you hit retirement, the hope is that you will get to kick back and enjoy your hard-earned savings. But you’ll enjoy your downtime a lot more and a lot longer if you manage your withdrawals smartly. To give yourself the best chance of outliving your money, financial experts recommend you withdraw no more than 4% of your total nest egg every year. This calculator can help you figure out how long your retirement savings will last with regular withdrawals. If you find your nest egg isn’t quite large enough to afford those withdrawals, there are still things you can do to stretch the assets you have accumulated. For instance, you might:
Figuring out how many years your retirement savings will last isn’t an exact science. There are many variables at play — investment returns, inflation, unforeseen expenses — and all of them can dramatically affect the longevity of your savings. But there’s still value in coming up with an estimate. The simplest way to do this is to weigh your total savings, plus investment returns over time, against your annual expenses. Try our calculator to get your estimate: Ways to make your savings last longerA calculator like the one above can be a helpful guide. But it’s hardly the final word on how far your savings can stretch, particularly if you’re willing to adjust your spending to suit some common retirement withdrawal strategies. Below are some smart rules of thumb on how to withdraw your retirement savings in a way that gives you the best chance of having your money last as long as you need it to, no matter what the world sends your way. The 4% ruleThe 4% rule is based on research by William Bengen, published in 1994, that found that if you invested at least 50% of your money in stocks and the rest in bonds, you’d have a strong likelihood of being able to withdraw an inflation-adjusted 4% of your nest egg every year for 30 years (and possibly longer, depending on your investment return over that time). “The 4% rule was the safe withdrawal rate during some of the worst market downturns in history.” The approach is simple: You take out 4% out of your savings the first year, and each successive year you take out that same dollar amount plus an inflation adjustment. Bengen tested his theory across some of the worst financial markets in U.S. history, including the Great Depression, and 4% was the safe withdrawal rate. The 4% rule is simple, and the likelihood of success is strong, as long as your retirement savings are invested at least 50% in stocks. Here’s how to approach investing in stocks. Dynamic withdrawalsThe 4% rule is relatively rigid. The amount you withdraw each year is adjusted by inflation and nothing else, so finance experts have come up with a few methods to increase your odds of success, especially if you’re looking for your money to last a lot longer than 30 years. These methods are called “dynamic withdrawal strategies.” Generally, all that means is you adjust in response to investment returns, reducing withdrawals in years when investment returns aren’t as high as expected, and — oh, happy day — pulling more money out when market returns allow it. There are many dynamic withdrawal strategies, with varying degrees of complexity. You might want help from a financial advisor to set one up. (Here’s how to find the best financial advisor for you.) Advertisement
The income floor strategyThis strategy helps you preserve your savings for the long haul by making sure you don’t have to sell stocks when the market is down. “Make sure essential expenses are covered by guaranteed income, like Social Security.” Here’s how it works: Figure out the total dollar amount you need for essential expenses, like housing and food, and make sure you’ve got those expenses covered by guaranteed income, such as Social Security, plus a bond ladder or an annuity. A word about annuities: While some are overpriced and risky, using the right annuity can be an effective retirement-income tool — you fork over a lump sum in return for guaranteed payments for life. In the right circumstances, even a reverse mortgage might work to shore up your income floor. That way, you always know your basics are covered. Then, let your invested savings be responsible for your discretionary expenses. For instance, you'd settle for a staycation when the stock market’s tanking. Which raises the question: Do you still call it a staycation when you’re retired? Not quite ready to retire?When you’re on the edge of retirement, you’re bound to wonder how far your existing savings will take you. But if you’re still a few years away from leaving the workforce, using a retirement calculator is a great way to gauge how changes to your savings rate will affect how much you’ll have when you retire. If you could use help with your financial plan, see our best financial advisors list. How long should your retirement savings last?One way to estimate how long your retirement savings will last is by using the “four percent rule.” This rule of thumb suggests that you can withdraw four percent of your retirement savings each year and still have enough money to last for 30 years. For example, let's say you have $100,000 in retirement savings.
How long will $3000000 last retirement?If you retire at age 65 and expect to live to the average life expectancy of 79 years, your three million would need to last for about 14 years. However, if you retire at 55 and expect to live to the average life expectancy, your nest egg would need to last for about 24 years.
How long will 600k last in retirement?You expect to withdraw 4% each year, starting with a $24,000 withdrawal in Year One. Your money earns a 5% annual rate of return while inflation stays at 2.9%. Based on those numbers, $600,000 would be enough to last you 30 years in retirement.
How long will nest egg last?The 4% rule is based on research by William Bengen, published in 1994, that found that if you invested at least 50% of your money in stocks and the rest in bonds, you'd have a strong likelihood of being able to withdraw an inflation-adjusted 4% of your nest egg every year for 30 years (and possibly longer, depending on ...
|
How long will retirement savings last with social security
Related Posts
Copyright © 2024 ihoctot Inc.
