Retirement Calculator Columbia, IL
Experienced, Unbiased, and Skilled Columbia, IL Wealth Management
Retirement Calculator in Columbia, IL. Ideally, retirement planning starts the day you get your first paycheck, but many people in Columbia, IL don't have the time, knowledge, or interest to calculate how much they'll need in retirement. While typing "retirement calculator" into a search engine may give you a brief snapshot of the health of your retirement funds, you'll need knowledgeable and honest Columbia, IL wealth managers to make sure you're headed in the right direction. At Correct Capital Wealth Management, we build a personalized plan based on your current income, debts, and assets, areas for improvement, and what activities and trips you want to take in retirement to apply our skills to help you get the retirement of your dreams. For a knowledgeable human retirement calculator, call us today at 314-930-401K or reach out through our website.
How to Calculate Your Retirement Needs in Columbia, IL
In order to calculate how much you need for retirement planning you'll need to balance the money you'll use with how much money you'll have coming in. To do this successfully, you'll have to take the following into account:
- Where you currently standing — Before calculating how to get to where you want to go, it's important develop an understanding of where you are now. This includes your age, household income, current retirement savings, and how much you put away each month for retirement. This allows you to see where your financial portfolio can be improved.
- Your real rate of return for retirement — You'll have to look at your rate of return both before and during retirement. Your real rate of return accounts for inflation when calculating your return on investment. For example, if your accounts grew by 10% last year, but the cost of living rose 3%, your actual return was 7%.
- Expected salary increases — Over time, salaries increase across the board. Average base pay salary growth went up an average of 4.8% year over year in the second quarter of 2022. Depending on how recently you entered the workforce, you may also be just starting a career in a well-paid industry, be promoted several time, have company stock options, or keep an eye out on the job market to move to more highly compensated job titles. Earning more money obviously allows you to grow your savings and investments faster, but will also likely make you accustomed to an increasingly comfortable lifestyle.
- How long you'll need the savings for — Obviously, none of us know precisely how much time we'll need our savings for. But having a good understanding of your retirement age and any health concerns will help guide your retirement calculations.
- Anticipated rate of inflation — As recent events have shown, forecasting variations in the investment world is an uncertain task at best. Nevertheless, most wealth managers will advise to keep a steady course of action and assume 3% annual inflation when retirement planning.
- Your Social Security benefits — You'll be eligible for different benefits based on your life circumstances. Different ways of earning a living, for example farm work, nonprofit or religious organizations, or railroad earnings have benefit rules specific to that employment.
There are many guidelines for calculating how much you need to save before you retire. Many experts say that your income need in retirement will be 80-100% of your most recent after-tax salary. Another guideline is the 4% rule, which states that every year you'll be able to spend 4% of your savings at the time of your retirement to have a comfortable but financially secure retirement as many as 30 years. To know how to best calculate how much money to save for retirement, it's important to consult with an experienced Columbia, IL retirement consultant who will be able to look at your personal financial situation and decide what the best way to calculate your retirement needs is for you.
Other Things to Contemplate | Columbia, IL Retirement Calculator
Beyond inflation, tax planning, Social Security rules and returns, you'll also need to consider more subjective questions, such as:
- How old would you like to be to when you retire? Some people want to see world wonders like Machu Picchu while they're still spry enough to hike it. Others see little point in leaving the workforce as long as they enjoy what they do and are physically able to do it. Whether one of those people sounds like you, or you're somewhere in between, the age you retire will determine how much you need to save, and will affect your Social Security benefits.
- Where do you want to live when you retire? The cost of living is not the same in Columbia, IL as it is in San Fransisco, Wyoming, Australia, or wherever you choose to retire. Each area also has different taxes, housing costs, the cost of health care, travel expenses, and even different possibilities for a part-time gig if don't want to be completely retired.
- What kind of lifestyle do you want to lead? Do you have exotic vacations, ski trips, and sky-diving to cross off your bucket list? Would you rather pass the time bird watching in the backyard? Or does your family live far away from Columbia, IL and you want to take twice yearly trips to see them? The more you want to do, the more money you'll need.
- Are you married? Social Security have different rules for couples. They'll also have to spend more, yet possibly have more income. Whether you'll spend the coming decades with a spouse will go a long way in
- Do you have dependents? How much longer? If you have children or other dependents, you'll have many expenses related to their care, and you may want to provide for them in other ways, for example taking out a life insurance policy. This will affect how much you can responsibly put away for retirement each year.
Why Choose Correct Capital's Columbia, IL Financial Advisors as Your Retirement Calculators
Your Columbia, IL advisor team at Correct Capital consists of CERTIFIED FINANCIAL PLANNER™ professionals, a five-time Top 1200 Advisor by Barrons, an Accredited Investment Fiduciary®, and a support team dedicated to optimizing your gains and retirement savings. We help Columbia, IL families and individuals understand their retirement goals, in addition to business owners interested in the benefits of implementing a great 401(k) plan.
Regardless of where you are and what your ideal retirement looks like, our extensive financial advice will help you understand different saving opportunities like Roth IRAs, whether or not you should rollover your 401(k) when moving to a new employer, and how to best manage your assets with the goal of growing your retirement savings.
Take Control of Your Retirement Planning in Columbia, IL With Savology
When choosing a retirement consultant firm, it's also important to look at what tools they can offer you to optimize your financial journey. We partner with Savology to offer Columbia, IL individuals and families a free, innovative online retirement calculator to better understand their financial health. You can reach a more secure financial future in three simple steps:
- Take the survey — It takes just 5 minutes to open an account and answer a few quick question. Then, you'll receive a personalized plan aimed at improving your financial wellness and financial literacy.
- Review Your Plan — We'll then send you a report card that grades your financial health in more than 10 categories, such as retirement, debt, income, and savings. We'll also provide you with concrete steps you can take to improve your financial situation for both now and in the future.
- Work with Wealth Manager from Correct Capital in Columbia, IL — We're here to answer any question you may have, help you understand your plan and how it relates to your financial goals, and discuss any additional insights we can.
Through Savology and Correct Capital's partnership, you'll receive a clear road map that lets you know what steps you can take today that will help you reach the retirement of your dreams.
Columbia, IL Retirement Calculator | Correct Capital Wealth Management
As Correct Capital is an entirely independent firm, our financial advisors will only recommend products and strategies that we believe in ourselves. We strive to build a relationship with you, and we will always appreciate your decision to trust us. As fiduciary advisors, we are legally and morally compelled to only do what we think is best for you and your retirement goals. For a retirement calculator in Columbia, IL with a human face, brain, and touch, call Correct Capital today at 314-930-401K or contact us online.