A 401 is a retirement account offered by a company for its employees. Contributions into this account are pre-tax, which means that like the traditional IRA they can grow on a tax-deferred basis. You will have to pay the taxman when you withdraw those funds, but if you’re in a lower tax bracket in retirement than you were during your working years, then that tax hit shouldn’t be too great. One of the hardest parts about preparing for retirement is thinking about life as a 70-something. A lot of people get so overwhelmed about saving for an unknown future, that they end up not saving anything at all.

Early retirement benefits are available at 62, but at a lower monthly amount. Here are some ways to boost your retirement readiness — whether you’re behind on your goals or are on track but maybe want to retire a little earlier. Based on your projected savings and target age, you might have about $1,300 per month of income in retirement. Tell us a few things about yourself, and this retirement calculator will show whether you’re on track for the retirement you want. We believe everyone should be able to make financial decisions with confidence.

It reduces the effective cash withdrawal in the following year. I’m unclear about the ending balance result after including pension/Social Security income. Does the result assume none of that income was spent and was merely saved?

It is based on 40 years of static returns…is that reasonable? What about negative returns and the affect on portfolio balance.? Think about the three consecutive years of negative returns for the years 2000,2001,2002…and 2008 where some portfolio allocations returned -38%. It would be much, much better if it allowed for the “go-go” “slow-go” and “no-go” stages.

Retirement planning tools can include online calculators, software, or other programs that can help you take control of your retirement savings. SmartAsset Advisors, LLC (“SmartAsset”), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Securities and Exchange Commission as an investment who is lendgo mortgage adviser. SmartAsset does not review the ongoing performance of any Adviser, participate in the management of any user’s account by an Adviser or provide advice regarding specific investments. You don’t necessarily have to research individual companies and buy and sell stocks on your own to become an investor.

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