Salary
- Enter your current annual salary or annual wages here. If you are married enter
the sum of both of your salaries.
Contribution
Percentage
- Enter a percentage between 1% and 15% that represents the percentage of your
income that you wish to withold into your 401(k) account. The witholding may not
exceed 15%. Also, a person cannot contribute more than $9,500 to a 401(k) account
in any year, so adjust this percentage to make sure that the total annual witholding
does not exceed $9,500. If you are married, you can both save up to $9,500 for
a potential total of $19,000.
Match
Percentage
- If your company matches your contributions, enter the matching percentage it
uses (for example, if your company matches 3% of your salary, enter 3 here). If
your company does not match, enter zero.
Pre-retirement
Interest Rate
- Enter the interest rate you expect to earn on your 401(k) account prior to retirement.
To give you two ideas, current CD rates run between 5% and 6%, while the stock
market has returned an average of 10% or so for many years. For 6%, enter 6 in
the entry field. Typically you would invest more agressively prior to retirement
and then move the money to less-risky investments after retiring.
Post-retirement
Interest Rate
- Enter the interest rate you expect to earn once you retire. See the previous
field for an explanation. You might enter 10 in the previous field and 6 here,
for example.
Inflation
Rate
- Enter the expected inflation rate during the coming years. 4% is a good average
number for the past ten years and would work well here. If you are more pessimistic,
choose a higher number.
Salary
Increase Rate
- Presumably your salary will rise over the years. It should, at a minimum, rise
with the inflation rate in the form of cost-of-living increases. It may rise faster
than that depending on the job you hold. Enter the rate at which you expect your
salary or wages to increase. If you are unsure, enter the inflation rate from
the previous field here.
Current
401(k) Value
- Enter the current value of any 401(k) accounts you have now.
Current
Age - Enter
your current age.
Expected
Retirement Age -
Enter the age at which you plan to retire. 65 is normal, but you might want to
consider early retirement options.
Desired
Retirement Income
- Enter the amount of money you would like to have to spend each year during retirement,
in today's dollars . For example, if you look at yourself and say, "If
I were to retire today, I would feel comfortable if I had $30,000 per year to
spend" then enter $30,000 here. Remember that you will have to pay taxes
on that amount just like you do today, so take that fact into account. A good
ballpark figure recommended by many financial experts is 80% of what you currently
make per year. Therefore if your salary is $30,000 now and you feel comfortable
with that amount, you could enter $30,000 * 80% = $24,000 in this field.
Click
the calculate button to see your retirement outlook
401(k)
Contribution
- This field shows how much money you are contributing to your 401(k) account
per year given the contribution percentage you entered above. If this value exceeds
$9,500, adjust the percentage you entered.
Matching
Contribution
- This field shows how much money your employer is contributing to your 401(k)
account based on the matching percentage you entered above.
401(k)
Account Value at Retirement
- This will be the total value of your 401(k) account when you retire.
Year Value
1
year value
- This is the total value of your 401(k) account at the end of your first year
in retirement.
2
year value
- This is the total value of your 401(k) account after two years in retirement.
3
year value
- And so on...
4
year value
5 year
value
10
year value
15
year value
20
year value
30
year value
40
year value
