I’ve been looking around for good financial calculators while retirement planning. It’s taken some time to find calculators that I could understand. Thought I’d pass a few along in case you need to use one. Having years to wait for retirement I find myself spending a lot of time working on financial considerations – almost as often as I look at RV rigs and dream about owning one.
Mortgage Payoff Calculator: This mortgage payoff calculator figures the extra payment necessary to cause an early payoff within a specified number of years. What I like about this calculator is that it uses just the interest and principal rather than having to worry about the tax and insurance portion of a mortgage payment. There is an option to email you the results but you don’t have to use the option. Just fill in some of the boxes and hit compute.
FIREcalc: Basically this calculator uses years of historic data to predict if you will have enough in a portfolio to last a specific number of years if you draw out X amount yearly, There are some settings you can customize for your specific situation. I’m still playing with FIREcalc and am very impressed. I ran a scenario through it using the projected balance of our 401K at the time we intend to draw from it. We already know how much per month we need to take out and add to other income to meet our projected budget needs. I checked to see if we took the amount out for a period of 20 years if we would run out of money in the account. According to FIREcalc there has never been a time since 1871 that would have happened. Even over a period covering the great depression. The calculator even considers inflation rates.
If you really want to do some serious planning, FIREcalc allows you to input items such as pension and social security payments, amounts you will contribute to savings before retirement and more. Then it will take all this into consideration and let you know what chance you have of running out of money considering how much you want to spend each year. When you get to the site, go to the top menu bar and hit each tab to make adjustments. Then just click the submit button and a chart will come up.
Investing Calculator: From the Dave Ramsey site. This is a good way to find out how much an account would be worth if you invested X dollars each month at a certain rate of return over a period of time. I’m using a 7% rate of return for our 401K plan because my finance guy said that’s a reasonable return to expect for our ratio of stocks and bonds.
Boring stuff – think I’ll look at few photos of rigs.