Question:
I modified our "Annual Amount Saved" until the combined (ie. me and my wife) Summary said that our assets will be sufficient. Then I changed our retirement ages to 65/55 and played with the "Annual Amount Saved" again until I saw that our assets are sufficient. Is this a good way to figure out how to make the retirement plan work?Answer:
Yes, you go to the Forecast page and on the Savings tab to increase your annual savings. Then switch to your wife's view and increase her savings. Click the Refresh button on the View menu to see your revised results.Even with higher savings, you may need to reduce your budget slightly or plan to retire later (even one year may make a good difference). But first try to save more and it should take you close to having enough funds for retirement.
if you achieve better than expected returns you can then periodically revise your plan as you get closer to retirement and have greater clarity on the feasibility of retiring at age 60.
Be sure to verify that you are not hitting the maximum contribution limit in 'Savings Plan' on the Forecast page. For example, if it's set at 30% of income and you earn $80,000 per year, the program will try to find the required savings, but only up to $24,000. You can this this maximum up to 100% of income. But as I recall, you are in a higher salary range, so what you are stating is correct.
0 comments:
Post a Comment
Note: Only a member of this blog may post a comment.