A Cut Above The Rest
Our retirement calculators are different from the other retirement calculators in the market today. Other calculators require you to guess and input your retirement age and let you know whether your savings will be sufficient to retire at that age or not. Our retirement apps are unique in that you can find out the age when you will be able to retire without any trial and error. With a clear picture of when you will be able to retire, you can make any necessary adjustments to your current retirement savings plan to achieve the goal of early retirement.
Home Affordability Reinvented
Our home affordability calculator is more realistic than the rest of home affordability calculators in the market. With the other calculators, you can know the home value that the lenders qualify you for. However, the home value that lenders may qualify you for is not necessarily what you can truly afford. Lenders qualify you based on your gross monthly income and monthly liabilities. Your liabilities may be small but you may have large monthly expenses such as medical, travel, entertainment and child care expenses. Due to saving for retirement, your take-home pay may be small even though your gross income may be high. You may need to set aside savings each month for the emergency fund or for future personal goals. Our home affordability app calculates the mortgage payment, loan amount and the home value that you can truly afford based on your monthly cash flow of take-home pay, all living expenses, and savings. With a more realistic view of what you can afford, you can rest assured that your home ownership is going to be rewarding and will not turn out to be burdensome.
Five Useful Strategies For Early Retirement
Retiring early is a possibility for everyone with a structured retirement savings plan regardless of income.
1. Start early on saving for retirement
Starting early to save for retirement is the key for growing a substantial nest egg to retire early. A retirement plan can be simple, start off early with a small contribution, then increase it by a set percentage each year to achieve your retirement goal. The benefit of diversified investing over a long period of time with the compounding effect can be huge.
At age 25, If you start off with saving 2000 dollars yearly and increase the savings by 1000 dollars each year until you max out the 401k, with diversified investing, you can have a nest egg of 1 million dollars by the age 55.
2. Take advantage of employer’s match of retirement contributions
A vast majority of employers offer to match your contributions to your employer-sponsored retirement savings plan up to a set percentage of your salary. You can take advantage of this valuable benefit from employer to ramp up on your retirement savings. Contribution of pre-tax dollars to a retirement savings plan may not be quite burdensome as taxes will be deferred on the contribution amount.
3. Invest in a well-diversified portfolio of stocks and bonds
Low cost diversified investing can minimize the risk and maximize the earnings. Well-diversified low-cost Index funds and ETFs or Target retirement funds can be a good option for long term investment of the retirement savings.
4. Invest the salary increases and bonuses in the retirement savings plan
Increasing the contributions to the retirement savings plan can be challenging with a tight budget. You may be able to invest your yearly salary increases and bonuses to avoid a dip in your take-home pay with an increase in your retirement contributions.
5. Supplement the retirement savings in employer-sponsored plan with IRA contributions
Contributions to the tax-advantaged retirement vehicles such as Traditional IRA or Roth IRA can be very effective in supplementing your retirement savings in the employer-sponsored plan. With the Traditional IRA tax-deferred option, subject to certain income limits, you may be able to contribute pre-tax dollars and receive tax deduction savings upfront. The Traditional IRA contributions and earnings are taxed on withdrawals during retirement. The Traditional IRA can be a good option if you anticipate being in a lower tax bracket during your retirement years. With the Roth IRA option, your contributions will be after-tax dollars but both the contributions and earnings withdrawals from Roth IRA account will be tax-free during the retirement. Roth IRA can be a good option if you are phased out for Traditional IRA tax deduction due to exceeding the income limit or you anticipate being in a higher tax bracket during your retirement years.