Retirement Calculator O'Fallon, IL
Experienced, Independent, and Skilled O'Fallon, IL Retirement Consultants and Financial Advisors
Retirement Calculator in O'Fallon, IL. Ideally, retirement planning starts the day you get your first paycheck, but many people in O'Fallon, IL don't don't know how, or don't want, to calculate how much they'll need in retirement. While searching for "retirement calculator" may be useful in giving you a sense of where you currently stand, you'll need knowledgeable and trustworthy O'Fallon, IL wealth managers to get the retirement you've been planning for. At Correct Capital Wealth Management, we balance your existing income, debts, and assets, how your money is likely to grow, and the life you want to live to apply our investment knowledge to help you get the retirement of your dreams. For an experienced human retirement calculator, call us today at 314-930-401K or reach out through our website.
How Retirement Calculating Works in O'Fallon, IL
To see what your retirement planning savings will need to be you'll need to balance what you're likely to spend with your estimated monthly income once you retire. To do this, you'll need to have a good grasp of:
- Where you currently standing — Before figuring out your preferred destination, it's important develop an understanding of where you are now. This includes how old you are, how much you and/or your spouse is brining in each month, how much you have already saved for retirement, and how much you put away each month for retirement. Doing this will help identify areas where your financial portfolio can be improved.
- Your real rate of return calculations — 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 how your money accumulated over various accounts. For example, if your accounts grew by 10% last year, but inflation was 3%, your real rate of return was 7%.
- Expected salary increases — Over time, salaries increase across the board. Average base pay salary growth increased by an average of 4.8% year over year in the second quarter of 2022. Depending on what stage you're at in your career, you may also be about to enter a more lucrative field, be promoted several time, get offered company stock, or move through different companies to more highly compensated job titles. Earning more money obviously allows you to put more money away, but will also likely make you accustomed to an increasingly lavish lifestyle.
- How long your retirement may last — Obviously, none of us know precisely how long our savings will need to last. But having a good understanding of how young or old you'll be when you retire and your health will help guide your retirement calculations.
- Expected rate of inflation — As we've seen in the early 2020s, predicting fluctuations in the market and inflation is an uncertain enterprise to say the least. Still, the vast majority of wealth managers will tell you not to panic and assume 3% annual inflation for people calculating their retirement needs.
- Your Social Security benefits — You'll be eligible for different benefits based on your specific situation. Some types of earnings, for example household employment, nonprofit or religious organizations, or being self-employed have benefit rules specific to that employment.
Economic experts have vary opinions on how exactly to calculate how much you'll need to save to have the income level you want in retirement. One rule of thumb some retirement calculators use is that your income need in retirement will be 80-100% of your total income the year just before you retired. Others recommend the 4% rule, which dictates that every year you can use 4% of your retirement savings to have a comfortable but safe retirement for up to three decades. To know what works best for you, it's important to reach out to an experienced O'Fallon, IL retirement consultant who will be able to take into consideration your entire financial situation and decide what the best way to calculate your retirement needs is for you.
Other Questions to Consider | O'Fallon, IL Retirement Calculator
An addition to the technical aspects of a retirement calculator, 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 the white sands of Playa Norte while have enough energy left to sprint across them. Others see little point in leaving the workforce as long as they enjoy what they do and are physically able to do it. Whether you're in one of those camps or somewhere in between, your retirement age will determine how long you need retirement savings for, 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 O'Fallon, IL as it is in New York City, Hawaii, Italy, or wherever you choose to live out your golden years. Where you live will also determine how much you pay in taxes, housing costs, the cost of medical care, travel expenses, and even different opportunities for a part-time gig if you want to keep busy.
- What do you want to do in retirement? Do you have foreign counties to see, cruises to take, and white water rafting to cross off your bucket list? Would you rather sit on the back porch with a crossword and a cigar? Or do subsequent generations live far away from O'Fallon, IL and you want to take seasonal trips to see them? The more you want to do, the more money you'll need.
- Do you have a spouse? Married couples have a higher maximum Social Security benefit than unmarried people. They'll also have more expenses, yet potentially 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 put dependents on your taxes, their care will be expensive, and you might help 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 O'Fallon, IL Financial Advisors as Your Retirement Calculators
Your O'Fallon, 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 supporting staff devoted to optimizing your gains and retirement savings. We help O'Fallon, IL families and individuals prepare for the golden years of their dreams, in addition to business owners who wish to give their employees a great 401(k) plan.
Regardless of where you're starting and what your ideal retirement looks like, our exhaustive financial advice will help you understand different saving opportunities like Roth IRAs, the benefits or disadvantages of rolling over your 401(k) when moving to a new employer, and how to best manage your assets in the interest of growing your retirement savings.
Savology and Correct Capital's Retirement Calculator
Another important factor to consider when choosing a retirement consultant is what resources they provide to optimize your retirement planning. Alongside Savology, we've developed an advanced online retirement calculator for O'Fallon, IL individuals and families to use free of charge. You can reap the rewards of the application in three pain-free 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 lets you know how you're doing in over 10 categories, for example retirement, debt, income, and estate planning. 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 Retirement Consultant from Correct Capital in O'Fallon, IL — We'll go over your plan and help you understand how they'll help you reach your goals.
With Savology and Correct Capital's Help, you'll receive a clear road map that lets you know what steps you can take now that will help you reach the retirement of your dreams.
O'Fallon, IL Retirement Calculator | Correct Capital Wealth Management
As Correct Capital is an entirely independent firm, our financial advisors will only give you advice that is independent, objective, and unbiased. We know that trusting someone with your hard-earned money and your family's future is difficult, and we will never take your trust for granted. As fiduciary advisors, we are legally and morally bound to only do what we think is best for you and your retirement goals. For a skilled and experienced human retirement calculator in O'Fallon, IL, call Correct Capital today at 314-930-401K or reach out to us through our website.