3 Replies Latest reply on Apr 29, 2011 9:25 AM by JerryD

    Calculating how long savings will last

    Chrysalis

      If you haven't heard of it yet, I suggest anyone considering retirement, investments, mortgages, or any large financial transaction get acquainted with Dinkytown.net (and no, I am not in any way associated with them).

      Dinkytown.net has dozens and dozens of free, online, interactive financial caluclators that I find very helpful and actually fun to use (OK, I'm a bit of a geek). I was just playing with the "How long will my retirement last?" calculator. By putting in various numbers and looking at the results (be sure to select "View Report") I suddenly realized that by the time I retire I will probably be earning $30,000/yr in interest and/or capital gains on my 401k. That plus maybe $20,000/yr from part-time work should meet my financial needs for quite a while without tapping into my retirement princple. I'd never considered how helpful that interest would be to me. Then I was able to change the numbers to see what would happen if I started to take an extra $10,000/yr from principle to pay for travel and fun things. Turns out my financial picture is not as bleak as I thought.

      I highly recommend Dinkytown.net as one of the tools you use when planning your financial future.

        • Re: Calculating how long savings will last
          jkom51
          There really isn't an on-line retirement calculator that factors in every possible scenario. Dinkytown's calculators are fast but simple. People might also want to run their numbers on the retirement calculators offered by various brokerages - I believe anyone can use them, even if you're not a customer. Schwab's, for example, is based upon the WSJournal retirement calculators, which is the one I use.