IN Retirement calculator

caliroseOctober 13, 2010

How long will your money last? Most calculators give estimates on how much to save. For us boomers who are already in retirement (forced through job deletion or by choice) it is too late for saving.

http://www3.troweprice.com/ric/ric/public/ric.do

Free calculator (article on USA Today) at RowePrice to determine how your current expense or expected expenses vs your savings, investments, how long to expect your money to hold out. This of course is barring tragic events.

PS - if it happens to say you can spend more, as it did for us, doesn't mean you HAVE to!!! LOL

I posted this on the retirement forum, but thought it might be of interest here also.

Here is a link that might be useful: free calculator

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Chemocurl zn5b/6a Indiana

Interesting site and calculator. Seems I could be eating a lot higher on the hog than I have been...but I probably won't change my eating habits.

Sue

    Bookmark   October 13, 2010 at 10:01PM
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bushleague

Not too bad, but there's no place to enter real estate.

    Bookmark   October 14, 2010 at 10:55PM
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sushipup1

What does real estate have to do with this? If you own investment property, enter your net income as income. If your own your home outright, that would reduce your monthly expenses in terms of rent or house payment necessary. Real estate owned that does not either shelter you nor provide income would just be an illiquid asset, not relevant to this calculation.

    Bookmark   October 15, 2010 at 12:04AM
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Chemocurl zn5b/6a Indiana

What does real estate have to do with this?
I imagine that there are a lot of folks that their largest asset is their (non cash generating) home and the surrounding property, which may or may not have a lot of value. The value of the property doesn't figure into the equation at all, though it is a non income generating asset. I do feel though, that it offers an extra amount of financial security.

    Bookmark   October 15, 2010 at 9:22AM
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sushipup1

Well, if you own your home, then your monthly expenses are reduced, since you don't have a house payment or pay rent. And as we have noticed in the last few years, real estate values are not what they once were. Someone who once had $250,000 equity in a $400,000 home just 5 years ago, now finds that he has a $150,000 mortgage on a house that's worth $150,000.

Best to just consider real estate only as either an income producing asset or the value of shelter in calculating your monthly expenses.

    Bookmark   October 15, 2010 at 10:20AM
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western_pa_luann

"Not too bad, but there's no place to enter real estate."

Many people make the mistake of including that... I am glad that calculator did not.

    Bookmark   October 15, 2010 at 12:02PM
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bushleague

I'm sorry some of my portfolio consists of stocks, MF's, ETF's, aircraft, and investment real estate, the latter of which I did figured into income. My primary home is paid for, as well as one investment property. I just wanted to be able to plug this number in since the whole basis of this calculator was to determine a monthly figure at retirement. I wanted to be certain that I can scrape by on $20,000/month in rental income.

    Bookmark   October 15, 2010 at 5:38PM
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sushipup1

I think the calculator is ambiguous about retirement accounts and other savings. But there's a place there for other income, I think. Just plug in your other income there.

It's income and expenses in this particular exercise. Just reduce your various instruments to cash flow and plug into this (or similar) calculation. Bushleague, it sounds like this particular exercise doesn't apply to you in the first place.

    Bookmark   October 15, 2010 at 6:48PM
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randy427

"This of course is barring tragic events. "
Not just for tragic events, but any situation that could change the information you put into this simplistic calculator should be considered and calculated separately, ie:
Start/stop paying college expenses
Increased medical expenses
Any other increase/decrease in regular expenses
Major purchase or gift(s)
Sale of assets with investment of proceeds
(That's where rental property could go from Income to Investments)

    Bookmark   October 25, 2010 at 6:08PM
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jkom51

bushleague can start saving now for LTC needs, especially if s/he wants to remain at home using home healthcare aides. Take a look at this SmartMoney article - the figures are from 2001, so they're a lot higher now.

In our area, a good licensed nursing facility is hitting $75,000/yr.

Here is a link that might be useful: SmartMoney: home health care providers

    Bookmark   October 28, 2010 at 7:04PM
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calirose

As stated, the calculator is for those already in retirement. Yes it is simplistic and that is the reason I chose to post it.

randy, most of us in retirement already know what our monthly expenses are - we don't have college expenses for example. Or, we shouldn't have. And if we are on limited incomes perhaps we shouldn't be buying large gifts. As for major purchases, we will be needing a new roof in a few years, but I have considered that by putting a monthly amount into savings so as to be prepared.

But you brought out the purpose of this calculator. That is, to realize one's income and expenses so as to know what one can afford.

    Bookmark   October 30, 2010 at 10:14AM
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