Financial Planning Tools For Retirement


How To Get Free Financial Planning

Webinar: Retirement Planning Tools & Resources for All Ages [library resources]

The Internet is chock full of places, such as this site, where you can get free advice about financial planning and investing. Any topic you need answers on is probably addressed at length somewhere or other, though of course you need to vet your sources carefully and take most advice with a grain of salt. Financial planning is a highly personalized process, so some advice that applies to one investor might not work for you.

Some financial planners may offer to give you advice for free or for a very low fee, but be aware that theyre only doing this because they are able to receive commissions from companies that they steer you towards. If an advisor offers you free advice to put your money in a specific savings product, chances are that person is going to be paid by the company that sells that product.

The firm where you invest your retirement savings or other funds may have advisors who will give you advice as part of their service to you, especially if youre investing for retirement through an employer program. Check with the company in question regarding the advising services they offer and if you have to pay anything extra to access them.

Wealthsimple makes savvy investing simple and affordable, mixing robo-adivising with the real-world smarts of human advisors. Start your financial planning off with a portfolio review with one of our Wealthsimple advisors.

Article Contents8 min read

How Much Should I Contribute To My 401k

You should contribute as much as possible — up to the contribution limits as determined by the IRS which are $19,500 and an additional $6,500 in catch up contributions if you are age 50 or over.

You can also contribute to an IRA or into non tax advantaged savings. It is possible that you aresaving too muchbut most people will benefit from concrete ideas forhow to save more.

Planning Services To Help Students Aim Higher

When it comes to the high cost of higher education, there are a variety of investment vehicles and loan options that can alleviate the financial burden. At Raymond James, our advisors can help you analyze the tax benefits, ownership structure, risk and contribution limits involved even what to do with your leftover funds if your aspiring academic earns a scholarship.

Earnings in 529 plans are not subject to federal tax and in most cases state tax, as long as you use withdrawals for eligible college expenses, such as tuition and room and board. However, if you withdraw money from a 529 plan and do not use it on an eligible college expense, you generally will be subject to income tax and an additional 10% federal tax penalty on earnings.

An investor should consider, before investing, whether the investors or designated beneficiarys home state offers any state tax or other benefits that are only available for investments in such states qualified tuition program.

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The Best Retirement Calculators For Canadians

How much you need for retirement depends on how you live now, how you want to live until retirement, and how you want to live once you actually reach your post-work life. It also depends on when and where you want to retire. There are a number of retirement calculators you can and should use to determine what you need to retire comfortably. Here are some options to help you better understand how much money you need for a comfortable future.

For starters, we have three great retirement-related tools that can help you figure out:

  • Retirement Age, determining at what age will you reach your retirement goal.
  • Retirement Savings, determining how much you need to save each month to reach your retirement goal.
  • Retirement Nest Egg, determining the value of your future retirement nest egg (based on current and future monthly investments.

Health Care Cost Projections

Retirement Planning

Health care is an essential expense in retirement, and you might not be accustomed to paying premiums or selecting health plans. Fortunately, several tools can help prepare you for what to expect when you eventually stop working.

For detailed estimates, its best to check with an insurance provider in your area. However, you can get a quick estimate with a few clicks online, as well.

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Helping My Kids With Post

Getting a head start on saving for your new babyâs education is a huge gift to your child. Take the time now to make sure your financial plan is in place.

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Financial Planning Tools For Buying Insurance

Financial planning tools will help you to build a personalized estimate of your budget needs so that you can plan to repay any debt that you may have. This will also help for you to accomplish paying your debts in a decent amount of time so that you can also save for your future. Many people talk about the importance of budgeting, but actually setting up a budget can be daunting to do. These tools help to make budgeting easy by walking you through each of the steps essential in the process.

You will find many financial planning tools that can precisely compute the returns that you will receive once you have retired. There are many different tools that can efficiently handle your personal finances and assist you with your retirement planning. Many of these tools you can begin to use at any time.

When using these tools, you will be able to save any information entered and return later to continue working. This is very helpful so that you do not become overwhelmed with completing your tasks all at once. It may also be helpful to have certain personal financial documents available to complete your budget and use with these tools.

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Passing On My Wealth And/or Business

Estate planning is one of the most complexâand overlookedâtopics in financial planning. Youâve completed an important first step by having a valid Will in place.

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How Does It Work

Financial Planning Tutorial – Retirement Planning

The Complete Retirement Planner asks the essential questions needed to generate a precise, year by year forecast of your actual need. Relying only on your personal information , it provides the most individualized and accurate results possible. Considerable flexibility allows you to model what-if scenarios, plan for one-time events, and make all desired adjustments quickly and easily.

All expenses can be itemized and adjusted for different time periods, with the resulting annual totals listed year by year. Multiple income sources,Traditional and Roth 401k/IRA contributions and investment return rates, employer contributions, and HSA contributions can all be entered , . Social Security income , HSA balances and distributions , non-retirement and retirement savings balances and distributions , Federal tax deductions, and Federal/State tax liability are also calculated for each year.

The result is a detailed and eye-opening picture of your financial future showing how much you will be able to save before retirement, how your savings and income compare to your actual need, and how long your savings will ultimately last during retirement.

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American Funds Retirement Planning Calculator

The American Funds retirement calculator has two versions. Theres the short version, called Quick Analysis, and the full one, called the Detailed Version.

The short version has 4 questions and takes about 5 minutes to complete.

The detailed analysis has 15 questions, and youll need about 15 minutes, maybe more, to go through it.

With the short version, you get the basics. The detailed analysis asks a lot of questions about your investments, annuities, and a few other details.

What to Expect

Like other calculators, youll be asked your birth year, income, the dollar value of all investments combined, and how much pension you might receive at retirement. With the in-depth version, expect more questions in greater detail.

On the Quick Analysis Results page, youll see a chart with the projected growth of your current savings and investments. The bar is set at the top end of the chart, which shows your projected goal.

If theres a shortfall in your current plan, the analysis suggests how much youll need to save. The goal would be to meet 80 percent of your current income during retirement.

With the in-depth calculator, youll get results that are more tailored to you instead of ones generated based on assumptions.

Instead of guessing that youll need 80 percent of your current income at retirement, you can adjust for your own needs.


  • Two calculators based on your needs and availability
  • Can be as detailed or as short as you like


  • Nothing extremely in-depth

Medicare And Social Security

Lastly, be sure you understand your Medicare and Social Security benefits post-retirement. Typically, retirees become eligible for Medicare and Social Security at age 65, though your precise eligibility age will depend on the year you were born. Youll also want to make sure you understand what your estimated monthly Social Security benefits are based on when you retire and how much you have paid in over the years. Keep in mind that this number can vary greatly depending on how many years you paid into Social Security and how much was withheld by your employer.

This isnt a comprehensive list of post-retirement financial tools by any means, but it is a good place to start. By taking the time to plan for your post-retirement lifestyle now, youll be better able to enjoy your golden years.

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The Best Retirement Calculators

As American workers began to shoulder more of the responsibility for funding their retirement, retirement calculators proliferated across the Internet. A Google search for online retirement calculator garners tens of thousands of hits. People are anxious about their retirement readiness, concerned about whether they will have enough money to last through their lifetime.

Consider Supplementing Your Financial Resources

The Flexible Retirement Planner

In addition to saving and investing money for retirement, there are other financial tools you can add to your plan.

First, you could purchase an annuity. Annuities are insurance contracts that pay you back a set amount of money in exchange for a lump sum or monthly premium. An annuity can offer guaranteed, predictable income for retirement in addition to the money youre withdrawing from savings and investments or Social Security benefits.

Annuities do have pros and cons, however. For example, an annuity can be a costly purchase if you need to pay a large lump sum premium upfront. And the quality of an annuity is only as good as the insurance company that issues it. If the insurer isnt financially healthy, that could pose a risk if its not able to make your annuity payouts when the time comes.

Next up is life insurance. Life insurance is primarily designed to offer a financial benefit to your loved ones when you pass away. But some policies, such as whole life and universal life insurance, can also allow you to accumulate cash value. Thats money you could borrow against during your lifetime as an additional retirement income stream.

Doing so can deplete the death benefit of your life insurance policy if you dont pay back what you borrow. And permanent life insurance can carry more expensive premiums than term life insurance, which has no cash value. But its worth considering how a cash value policy could help round out your retirement plans.

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Indirect Cost Ratio / Indirect Costs

  • We assume that the indirect costs are charged as a % of your balance are charged mid-year on average.
  • We assume that these fees are tax deductible within super and that tax deductions are credited before deducting these fees from the returns that are applied to your account.
  • We make a default assumption of 0% indirect costs.

Results Are Shown At 1 July

  • Your projected total super balance is shown at 1 July after you reach the age indicated on the chart.
  • Your projected income results are shown for the financial year beginning on 1 July after you reach the age indicated on the chart. For example the super balance shown for age 65 is the balance at 1 July after your 65th birthday.
  • The projection assumes that you and your partner will retire on the 1 July after reaching the selected retirement age.

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Retirement Planning Solutions For Living Emphasis On Living

Your goal, simply stated, is to build up enough assets to provide adequate income to meet your needs through retirement. Whether youre still early in your career or just a few years away from retirement, Raymond James has the resources to plan for the retirement lifestyle you want.

We offer a comprehensive range of retirement planning services, for individuals as well as businesses seeking to provide savings vehicles for their hardworking employees. We offer savings options that permit both tax-deductible contributions and tax-deferred earnings, as well as a dedicated and knowledgeable staff to help with planning.

We work diligently to serve as a steward for your wealth, simplifying lifes complexities with a full spectrum of strategies your advisor can tailor to your needs.

Withdrawals may be subject to income taxes, and prior to age 59 1/2 a 10% federal penalty tax may apply.

Goal Planning

How Much Do I Need To Retire

Financial Planning 2: Planning Your Retirement

Figuring out how much savings you need to retire is not a simple calculation. You must know how long you will live andproject your expensesforward from retirement through the rest of your life. Expenses should include housing, healthcare, all household costs, what you know what youll spend and make a guess at unexpected outlays. You also need to calculate your retirement income from Social Security and other guaranteed sources. .

Any retirement expenses not covered by known retirement income will need to be taken care of with your savings. That sum is how much savings you will need for retirement . There are hundreds of numbers that go into getting a really accurate estimate of how muchretirement savings you need. The NewRetirement Planner is a comprehensive tool that can help you get to a reliable number.

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Best Retirement Planning Tools For 2021

This blog has partnered with CardRatings for our coverage of credit card products. This site and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone and have not been reviewed, endorsed or approved by any of these entities.

As an Amazon Associate, I earn from qualifying purchases. More information

Saving and investing for retirement without a specific retirement plan is like setting sail on a ship with no destination.

Lets face it, the typical investor is probably unaware of the many intricacies involved in preparing for retirement. Youll be attempting to prepare for an event that may be decades into the future and will feature plenty of variables along the way.

How can you possibly know everything you need to reach your destination safely?

Fortunately, there are retirement planning tools available. Some are simple calculators, that will primarily crunch the investment numbers. Others provide comprehensive retirement planning, often with the assistance of a dedicated certified financial planner. Some are free, and others will involve either a one-time or ongoing fee.

Whether you choose a free service or a premium one, using a retirement planner will increase the likelihood of a successful retirement. If nothing else, it will provide you with a series of target numbers that will help you to establish realistic retirement goals.

  • Bottom Line
  • Who Should You Talk To About Retirement Planning

    Financial advisors will help you figure out your retirement situation, but make sure you use a financial advisor that specializes in retirement planning. Financial advising is a broad career that can cover any aspect of your financial life. If your primary concern is retirement, find a financial advisor with that as their primary focus.

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    What Is The Best Age To Retire

    Retirement means different things to different people. It is becoming more common to think of retirement as the age when you stop needing to make money . By that measure, you can retire as soon as you have adequate income and savings to cover your expenses for as long as you live — no matter how long that turns out to be. Here are some tips for figuring outwhen to retire.

    Interested in an early retirement? Try out these29 tips, tricks and hacks for reaching your early retirement goal.

    Getting Rid Of Credit Card Debt Before Retirement

    Financial Planning Tools

    Speaking of debt, Canadians carry a lot of it. Approximately $2.5 trillion in outstanding debt, to be exact, according to Statistics Canada. Were able to access a lot of credit, and we use it!

    On credit cards alone, Canadians carry an average of $3,330 in credit debt. And that doesnt include what people have tied up in loans and mortgages.

    It is possible to get your finances and debt under control. The trick is to stop using credit while paying it down.

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    The 10 Best Retirement Calculators

    Retirement planning has never been more complicated. With changes in the economy and uncertain times ahead, you might think you need a finance degree to get it right. But then again, its never been so simple.

    Fortunately, there are tools called retirement calculators that help clear the murky water.

    A quick Google search will show you that theres no shortage of retirement calculators out there. But volume doesnt reflect quality. So, how do you know which one will work for your situation?

    Simple: Weve done the research for you.

    Of the possibilities, weve selected NewRetirement, T. Rowe Price, American Funds, AARP, Bankrate, and others. Each of these offers the fundamental information to help you make sound retirement planning decisions. But each one has something special, too.

    Whether youre looking for a quick snapshot or an in-depth review of your goals and progress, youre likely to find what you need in one of these top-shelf retirement calculators.

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