Use A 401K Calculator To Secure Your Retirement

Different calculators can be found on the Internet. If you are purchasing a house a mortgage calculator is helpful in choosing the right loan at the correct interest rate. If you are buying a car, a short-term loan calculator will be useful. When you are planning for your retirement it is imperative that you utilize a 401k calculator.

A 401(k) can be one of your best tools for creating a secure retirement. It provides you with two important advantages. First, all contributions and earnings to your 401(k) are tax deferred. You only pay taxes on contributions and earnings when the money is withdrawn. Second, many employers provide matching contributions to your 401(k) account which can range from 0% to 100% of your contributions. The combined result is a retirement savings plan you can not afford to pass up.

A 401k calculator will provide a long term picture of your savings and allow you to test different investment strategies. Bloomberg.com offers several retirement calculators, including a tool specifically designed for 401k savings. After entering your age, current 401k balance, expected retirement date, employer match, employer maximum match, and expected salary increase, the calculator will produce a very accurate profile of your expected 401k retirement account. Not only will the calculator provide you with the basic numbers, but a graph of your expected growth will also be presented. The calculator allows you to test several different strategies and analyze the difference to choose the strategy that is best for your situation.

Example: What will be the approximate value of your 401(k) in 10 years?

Assumptions:

  • You currently have $20,000 in your 401(k).
  • Your annual salary is $50,000 and you hope to receive a 3% annual salary increase.
  • You are contributing 6% of your salary to the plan
  • Employer will match your contribution 100% up to a maximum of 6% of your annual salary.
  • The plan has been earning an average of 11% per year, and you expect that to continue.

You will have $ 171,725.44 in your 401(k) in 10 years

Go to one of the many 401k calculators online and discover the best plan for you!

Privacy Policy


Plainfield, Safety Harbor, Freeport, Burlington, Sparks, Denton, Iowa City, Scottsbluff, San Leandro, Indianola, Mountain View, Snellville, Westfield, Jacksonville Beach, Miami, Laconia, Saraland, Urbana, Guymon, Virgin Islands, Lake City, Oakland, Hollister, Hemet, Kansas, Hartselle, Goodlettsville, Kaysville, Vancouver, Farragut, Walnut, Coachella, Orange, Lehi, Oregon, Caledonia, South Houston, Gulfport, Pueblo, Alaska, San Diego, Longview, Winter Park, Elkhart, Shawnee, Rhode_Island, Maine, Moorhead, La Puente, Durango, Derby, Rolla, Gretna, El Centro, Hopkins, Dinuba, Anchorage municipality, Lynn, Texas, Watertown, Colorado, Keokuk, Acworth, Hawaii, Auburn, District of Columbia, Independence, Warren, Phoenix, Malibu, Glendale

Comments page 0 of 0
Click here to add a comment
There are currently 0 comments to display.

 

Tax Tips for the One Man (Woman) Business

By Stephen Nelson
Running a one-person business? Tired of the huge hit you take at tax time? Want to save money on your accounting and taxes? Consider these simple tips and tricks...
[READ FULL ARTICLE]

Central Fund Of Canada - An Alternative Investment Vehicle For Precious Metals

By Aidan McNamara
This article looks at a vehicle for investment or trading in precious metals that is generally little known to the U.S. investor, but is quoted on the American Stock Exchange and is as easy and convenient an investment or trading position opportunity as any U.S. quoted stock.
[READ FULL ARTICLE]

IRA Income Limits - Do You Qualify?

By Mika Hamilton
One of the first questions middle and high income earners ask themselves when considering the option of establishing an IRA account is whether or not they meet the IRA income limits for the contributions to an account. Yes, there are income limits for receiving IRA account tax benefits, and they were established to prevent people with extremely high incomes from using the accounts to shelter their income from tax liability.
[READ FULL ARTICLE]

SEP IRAs - Understanding the Basics

By Mika Hamilton
Most people are now familiar with the acronym IRA (Individual Retirement Account). These accounts have become popular for a number of reasons. Each particular type, such as an SEP (Simplified Employee Pension) IRA's, offer some options that may appeal more than other account types.
[READ FULL ARTICLE]

Saving With a SEP IRA Retirement Fund

By Dean Novosat
The Sep IRA is a simple retirement plan that allows an employer to make contributions for their own retirement or their employees’ retirement.
[READ FULL ARTICLE]