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# What Is The Best Retirement Calculator？ How Do I Know Which Calculator to Use？

Description: The following article mainly focuses on the key point of retirement calculator, in which the author Justin who is a certified financial planner reviews a popular question of why calculators provide different outputs. The things which we do today will drastically affect our future positively or negatively.

This is Justin answering this client question of the week, this week’s question comes from Julie, before I read your question, I’ve had this exact same question, mine was about eight, nine, ten years ago, so here’s what she says, Justin I love to research my financial options before I make a decision.

I Googled retirement calculator, side note it’s one of the top Googled thing on the Internet, she says I picked the calculator on page one of Google and began entering my data, I was quickly amazed at the output and decided to check the data with another calculator.

The output from the second calculator was drastically different than the first calculator to the tune of seven figures, I decided to check a third calculator and receive a totally different output, how am I to gauge where I am in my financial life if all the tools provides different output?

It’s math, she puts big bold letters help, Julie I’ve been there, a couple of years ago I wanted to figure out where I am going to be, where I am at now, where I am going to be based on my savings based on my lifestyle for my retirement.

As a CFP which is a certified financial planner, I have some of the industry’s top invested calculators, so I occasionally like to look at this, coincidentally I discovered the same thing that I use three or four or five different calculators and none of them had even close to the same answer.

This was not an uncommon occurrence, in fact this week whenever I received this question, I read in the June edition of money statement, money magazine put it this way, there were 36 popular tools analyzed, 25 of them drastically underestimated the value needed for our target nest egg.

When you run a calculation for your retirement, there are many things you have to consider, we have to consider our age, how much money we have, how much money we’re saving, how healthy we are, the list goes on and on, those are the simple points.

The hard point is our rate of return, not from a flat eight percent bread basis, the market goes positive 8, negative 12, positive 25, negative 2, negative 25, positive 30, the list goes on and on, the market doesn’t move on a constant eight percent, it moves on an up-and-down basis on a yearly basis.

That’s a dynamic calculation, many calculators are going to do that, so what can you do? Let’s get to that, first you need to look for retirement calculators which includes the little caveat, what I look for is marital status, are you married? How’s your health? Many people don’t think about it.

A good retirement calculator says how’s your help? Is it good? Is it average of the core? Because when you get to retirement, you may need more money for health issues, what’s your tax status? A good calculator is going to ask you what your tax status is now or what we attack statically in the future. Look for some key data entry points that will help you find a good calculator.

Second is test several calculator. Once you find that data point that you were looking for, they run it through three or four calculators, you’ll get the average numbers that you need.

Third hire a professional. We have some of the best tools available in the industry, the data point and the input help you get the best for the most likely assumptions you can have now, no one has a crystal ball, that’s why these calculations project in the future is so difficult.

We don’t know how our help is going to be, we don’t know what Uncle Sam’s going to do on taxes, we don’t know what inflation is going to be, we don’t know what our return on investments going to be, the list goes on and on, but what we do know is that the things which we do today will drastically affect our future positively or negatively.

With that we can make those assumptions, Julie I understand where you’re at, I hope they give you some insight, this is Justin answering this client question of the week, if you found this article helpful, like it, give us a thumbs up, share this and subscribe to it.

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