Retirement Calculator

A common rule is the 4% rule: multiply your annual retirement expenses by 25 to get your target nest egg. For $50,000/year expenses, you need $1.25 million. This assumes a 4% safe withdrawal rate that historically sustained portfolios for 30+ years.

The 4% rule suggests withdrawing 4% of your portfolio in the first year of retirement, then adjusting for inflation each year. Based on historical data, this gives a high probability your money lasts 30+ years. Some suggest 3.5% for more safety.

Start as early as possible! Thanks to compound interest, $500/month from age 25 to 65 at 7% return yields $1.2 million. Starting at 35 yields only $567K. Every decade you wait roughly halves your final amount.

Aim for 15-20% of gross income for retirement. If your employer matches 401(k) contributions, that counts toward your goal. If starting late, you may need 25-30%. Use catch-up contributions after age 50.

Historical stock market returns average 10% before inflation, 7% after. A balanced portfolio (60% stocks, 40% bonds) might expect 6-7%. Be conservative in projections - using 6-7% accounts for fees and realistic returns.