3 Top Retirement Planning Hacks for the Digital Age
Planning for retirement can be overwhelming. You have to determine how much you’ll need to live comfortably, set a realistic retirement age, and establish a plan for covering unexpected costs. Luckily, there are several online tools and apps that can assist you with tracking your progress. Whether you’re just starting your career or close to leaving the workforce for good, you can still benefit from what these tools have to offer. Here are three digital tools that can help you navigate the retirement planning waters.
1. AARP Retirement Calculator
The thought of possibly running out of money when you need it most is unsettling. This handy online calculator can help you determine if you have enough cash saved to last throughout your golden years. Once you answer a few questions about your current savings, salary, and supplemental income, you’re on your way to getting a snapshot of your situation. If your initial calculations show that your nest egg is underfunded, you can simply enter new information such as a later age for retirement or more frugal lifestyle requirements.
If you often have your iPad by your side, RetirePlan will offer both convenience and utility. This iPad app assists you with getting answers to questions that may come up during your retirement. The RetirePlan app is unique because it allows for variables to be taken into consideration, such as a major purchase or an inheritance, which are not often seen in other retirement planners. There is also a feature that can show you hypothetical scenarios such as a stock market crash or a change in spending habits. After entering your data, you’ll see an updated graph that shows you whether or not your proposed retirement plan will work out for you. There are also sliders that help you visualize how different values will affect your plan. Once you are done, you can email your completed plan.
3. The Flexible Retirement Planner
This tool uses Monte Carlo simulation, which is a method used to guess the likelihood of different outcomes by implementing several simulations with random variables. With The Flexible Retirement Planner, you can account for unexpected situations and add annual changes to your finances. Users can choose from conservative, flexible, and stable retirement spending models when it comes to future expenses. In addition, you are given the option to adjust figures such as the percentage of inflation, portfolio returns, and tax treatment. A probability for success is given after you complete your calculations.