Retirement Planner

Visualize your path to financial freedom. See how your savings grow over time with the power of compound interest.

Your Plan

Note: Historic stock market return is ~10%, but adjusted for inflation it is ~7%. We default to 7%.

Projected Balance at 65

$0

Nominal Value (Future Dollars)

Purchasing Power

$0

Real Value (Today's Dollars)

How to Use This Calculator

  1. Current Age & Retire Age: Defines your time horizon. The longer the time, the more compounding works for you.
  2. Current Savings: Total money you have invested today (401k, IRA, Brokerage).
  3. Monthly Contribution: How much you add to your investments every month.
  4. Expected Return: The annual growth rate of your investments. The S&P 500 historically averages ~10%.
  5. Inflation Rate: Reduces the "Real Value" of your money. Accessing the "Purchasing Power" result shows what your money is worth in today's terms.

The Magic of Compounding

Albert Einstein famously called compound interest the "eighth wonder of the world." In retirement planning, your money makes money, and then that money makes more money.

Starting early is the most powerful lever you have. Investing $500/month starting at age 25 yields significantly more than investing $1,000/month starting at age 45, simply due to the time component.

The 4% Rule

A common rule of thumb for retirement withdrawals is the 4% Rule. It suggests you can withdraw 4% of your total portfolio in the first year of retirement (adjusted for inflation thereafter) without running out of money for 30 years.

  • Goal: If you need $60,000/year to live.
  • Math: $60,000 / 0.04 = $1,500,000.
  • Target: You need a portfolio of $1.5 Million.