In the News
Historical inflation - Compare purchasing power
If your income does not keep pace with increasing consumer prices then your standard of living can be reduced. Use this calculator to understand how historical inflation has impacted your dollars' purchasing power over the years. Source: U.S. Department of Labor, Bureau of Labor Statistics
How does inflation impact my standard of living?
Inflation can erode purchasing power. For example, a dollar today cannot buy the same amount of goods and services it could 20 years ago. It will continue to erode purchasing power in the future. Use this calculator to determine the impact inflation may have on your standard of living.
How long will my money last with systematic withdrawals?
You have worked hard to accumulate your savings. Use this calculator to determine how long those funds will last given regular withdrawals.
How much am I spending?
Where does all the money go? An itemization of your living expenses may help you budget better and plan for future expenses. Use this calculator to help you recall and itemize your living expenses.
How much do I need for emergencies?
It is prudent planning to have at least three to six months of liquid/cash assets set aside in the event of a loss of job, medical emergency, short-term disability, etc. Use this calculator to help determine how much you need to set aside monthly or as a lump sum to create an emergency fund.
Should I pay down debt or invest my monthly surplus?
When you receive some extra money it may be difficult to determine whether you should invest the funds or use them to retire debt. Financial theory recommends that if your after-tax return on investments is greater than your after-tax cost of debt then you should invest. However, remember to consider the inherent riskiness of the investment you select (i.e. you may lose the money you invest yet still have obligations to pay back the liability). Use this calculator to help analyze your situation.
Should my spouse enter the work force?
A working spouse can provide additional needed household income. However, when making your decision, you need to look at the net income generated by a working spouse not simply the gross income. Factors such as health insurance savings, increased daycare expenses, additional transporation costs, etc. need to be considered. Use this calculator to help determine the potential additional take-home pay.
What is my current cash flow?
Businesses generate a sources and uses of cash statement to evaluate their income and expenses and to check profitability. Similarly, a cash flow statement can help you evaluate your personal income and expenses and see if you are running 'in the red or the black' each month.
What is my current net worth?
In order to get where you want to go, you need to know where you are. You can get a view of your financial position by generating a personal net worth statement. Over time your net worth will change as your assets earn interest or are depleted and your liabilities increase or decrease. Use this calculator to estimate what your net worth could be in the future based on specified growth rates.
What is my projected cash flow?
Businesses generate a sources and uses of cash statement to evaluate their income and expenses and to check profitability. They also create a proforma which is a projection of future cash flows based on assumptions about growth/decline of income and expenses. Similary, a projected cash flow statement can help you evaluate your personal income and expenses and see if you potentially may run 'in the red or the black' at a future date.
What is my projected net worth?
In order to get where you want to go, you need to know where you are. You can get a view of your financial position by generating a personal net worth statement. Over time your net worth will change as your assets earn interest or are depleted and your liabilities increase or decrease. Use this calculator to estimate what your net worth could be in the future based on specified growth rates.
What is the value of reducing, postponing or foregoing expenses?
Use this calculator to help determine what you could accumulate by reducing or eliminating discretionary monthly expenses.
How much should I be saving for college?
With college costs increasing at twice the rate of inflation, it is important to start saving early. Interest working for you now in a regular savings program is much better than having interest work against you in the future in the form of education loans. Use our college savings calculator to determine how much you should be saving for college on a regular basis.
What are the advantages of a 529 college savings plan?
Tax-deferral can have a dramatic affect on the growth of an investment. With a state-sponsored 529 College Savings Plan your contributions can grow tax-deferred (some states allow contributions to be partially or completely deductible) and distributed income tax-free as long as distributions are used for qualified education expenses such as tuition, fees, room and board at higher education institutions. There is no limit on contributions but some states tend to limit contributions once the plan assets have reached a defined maximum (typically $200,000 - $250,000). Under a special election, you may make contributions of up to $70,000 per beneficiary in a single year without triggering a federal gift tax by accelerating five years worth of contributions (gifts) as of 2013. Married couples may contribute $140,000 per beneficiary in a single year.* Assets are professionally managed by fund managers selected by the state. Participants can choose from two to almost 30 mutual fund-type investments. Control of the account remains with the contributor regardless of the age of the beneficiary. * A $70,000 gift is viewed as an accelerated gift over five years. Any other gifts to the same beneficiary by the contributor within five years may result in a federal gift-tax liability. If the contributor dies within the five-year period, a prorated portion of the contribution may be included in his or her taxable estate for federal estate tax purposes.
What is the value of a college education?
It may surprise you that, on average, an individual with a bachelor's degree earns approximately $57,026 per year, compared to the $34,197 average yearly salary of a worker with a high school diploma. Use this calculator to see the value of a college education. Source: U.S. Census Bureau, American Community Survey, 2006-2008.
When should I begin saving for my child's college?
When saving for college, compound interest can be your friend. However the longer you wait to start saving the less interest you will accumulate and the more you will have to save. Use this calculator to determine when to start saving for college and to help illustrate what a small amount of monthly savings might grow to if you start today.
Do I have too much debt?
How much debt is too much? Use this calculator to help gauge your total debt level and what steps might need to be taken to improve your situation.
How long until my loan is paid off?
By making consistent regular payments toward debt service you will eventually pay off your loan. Use this calculator to determine how much longer you will need to make these regular payments in order to eventually eliminate the debt obligation and pay off your loan.
How long will it take to pay off my credit card(s)?
Americans today owe more money than ever before. The fact that 'interest never sleeps' means that the situation will continue to worsen unless steps are taken at the individual level to reduce or eliminate debt. Additional monthly payments can make a difference to accelerate the payoff and save yourself hundreds and thousands in interest payments. Use our calculator to figure out when you can pay off your credit card.
Restructuring debts for accelerated payoff
The quickest way to retire your debt is to 1) determine what your total debt payment is now, then 2) sort your debts from highest interest rate to lowest, then 3) continue to make the same total payment amount except pay Minimum Payments on all debts except the highest rate debt, then 4) once the highest rate debt is paid off apply those new savings to the next highest rate debt and so on. Use this calculator to determine the interest and time saved using this 'Roll-Over' technique along with the potential increase in savings once all the debts have been paid off. The calculator will sort the debts for you when completing the analysis. You may also apply an extra amount to the total payment to accelerate debt payoff even further.
Should I consolidate my personal debt into a new loan?
With interest rates at historical lows, it may make sense to consolidate some of your credit card and other personal debt into a new consolidated loan, typically a home-equity loan. Consolidation loans can significantly reduce your required monthly payment because they are generally amortized over 10 or 15 years. Use this debt consolidation calculator to determine how quickly you could get out of debt and how much interest you might save.
Should I pay off debt or invest?
When you receive some extra money it may be difficult to determine whether you should invest the funds or use them to pay towards liabilities. Financial theory recommends that if your after-tax return on investments is greater than your after-tax cost of debt then you should invest. Use this calculator to help analyze your situation.
What is the balance on my loan?
If you know your current payment, the interest rate and the term remaining, you can calculate your outstanding loan balance. Use this calculator to determine the loan balance along with an amortization schedule.
What is the impact of making extra payments on my debt?
Over the course of a loan amortization you will spend hundreds, thousands, and maybe even hundreds of thousands in interest. By making a small additional monthly payment toward principal, you can greatly accelerate the term of the loan and, thereby, realize tremendous savings in interest payments. Use our extra payment calculator to determine how much more quickly you may be able to pay off your debt.
What would my loan payments be?
The loan amount, the interest rate, and the term of the loan can have a dramatic effect on the total amount you will eventually pay on a loan. Use our loan payment calculator to determine the payment and see the impact of these variables on a specified loan amount complete with an amortization schedule.
Which is better: Cash up front or payments over time?
Use this calculator to help determine whether you are better off receiving a lump sum payment and investing it yourself or receiving equal payments over time from a third party.
Home and Mortgage
Adjustable rate mortgage calculator
Unlike fixed rate mortgages, the payments on an adjustable rate mortgage will vary as interest rates change. Use our adjustable rate mortgage (ARM) calculator to see how interest rate assumptions will impact your monthly payments and the total interest paid over the life of the loan.
Compare a 'no-cost' vs. traditional mortgage
Many lenders will offer a 'no-cost' loan in lieu of a traditional mortgage. 'No-cost' loans are generally priced at a higher interest rate than a traditional mortgage. The higher rate allows the lender to make enough money on the interest rate spread from the underwriter to pay for all your closing costs and provide them with their profit. Use this calculator to help determine if a no-cost loan with your lender is better than a traditional mortgage.
Compare an interest-only vs. traditional mortgage
An interest-only mortgage may be enticing due to lower initial payments than a traditional mortgage. However, when the interest-only loan begins to amortize after 5, 10 or 20 years then your monthly payments will be higher. Use this calculator to determine the monthly payments, timing and total interest paid with each loan type.
Comparing mortgage terms (i.e. 15, 20, 30 year)
Different mortgage terms and rates can make the loan selection process confusing, especially if you don't plan on keeping the loan for the full term. Use this calculator to determine the total cost in today's dollars of various mortgage alternatives taking into account your opportunity cost of money.
How do closing costs impact the interest rate?
If you choose to finance your closing costs, the monthly loan payments will be higher than if you had paid the closing costs out-of-pocket. In order to help borrowers compare loans, lenders use a standard calculation called annual percentage rates (APR) which takes into account the closing costs. Use this calculator to itemize the closing costs and to compare loans with different rates, fees or terms.
How much can I borrow from my home equity (HELOC)?
Depending upon the market value of your home, outstanding mortgage balance, credit history and other factors, you may qualify for a home equity line of credit. Monthly payments on a HELOC are variable as they fluctuate with interest rate changes. Use this calculator to estimate your borrowing capacity. (Subject to underwriting guidelines, including limits on maximum loan to value.)
How much home can I afford?
When you're buying a home, mortgage lenders don't look just at your income, assets, and the down payment you have. They look at all of your liabilities and obligations as well, including auto loans, credit card debt, child support, potential property taxes and insurance, and your overall credit rating. Use our home affordability calculator to determine how much of a mortgage you may be able to obtain.
The loan amount, the interest rate, and the term of the mortgage can have a dramatic effect on the total amount you will eventually pay for the property. Further, mortgage payments typically will include monthly allocations of property taxes, hazard insurance, and (if applicable) private mortgage insurance (PMI). Use our mortgage calculator to see the impact of these variables along with an amortization schedule.
Should I convert to a bi-weekly payment schedule?
It may surprise you that most banks and mortgage companies collect two to three dollars for every dollar that you borrow! However, there is a way to accelerate mortgage payoff using a method called Bi-Weekly Mortgage Payments. This program is implemented by dividing your monthly mortgage payment in half and paying it every other week - resulting in a net effect of paying an extra payment toward principal each year.
Should I pay discount points for a lower interest rate?
In some cases, it may benefit you to 'buy down the interest rate' by paying extra money up front in the form of discount points. Use this calculator to help determine if this makes sense for you.
Should I refinance my mortgage?
Over the last couple of years with interest rates at a 40-year low, many people refinanced their mortgages. Even though rates have crept up over the last couple of months, refinancing may make sense for you. Use our refinance calculator to analyze your situation today!
Should I rent or buy a home?
With interest rates near forty year lows, the decision to rent versus buy becomes difficult. Use this calculator to help determine which makes sense for you at this time.
What are the tax savings generated by my mortgage?
With the interest on a mortgage being deductible when you itemize deductions, it may surprise you how much you can save in taxes. Use this calculator to determine your potential tax savings with a mortgage. (Consult your tax advisor regarding the deductibility of interest.)
Which is better, fixed or adjustable-rate mortgage?
It is a difficult decision to decide between a fixed and an adjustable-rate mortgage. Factors such as loan duration, the index used by the lender, the number and timing of rate adjustments, and your assumption about the increase/decrease of future interest rates all have an impact. Use this calculator to help compare the total cost of each alternative.
How long will my current life insurance proceeds last?
You may think that you are adequately insured in the event of your death. It may surprise how quickly the tax-free insurance proceeds may be depleted by your survivor income needs.
How much disability income insurance do I need?
Your chances of becoming disabled are far greater than your chances of dying. It may surprise you that in December of 2010, there were over 2.5 million disabled workers in their 20s, 30s, and 40s receiving Social Security insurance benefits due to a disability.* * Source: Social Security Administration, Disabled Worker Beneficiary Statistics, ssa.gov
How much life insurance do I need?
Planning to meet the financial needs of your survivors is one of the most important and fundamental steps in creating a sound financial plan for you and your family. This step may require the purchase of a life insurance policy to ensure that your family's needs will continue to be met, even after your untimely death cuts your earnings potential short.
How much will I earn in my lifetime?
Most people earn a small fortune during their lifetime. Yet many of them are unaware of how their annual income adds up over the years. This calculator, designed to help you estimate how much you'll earn before you retire, may surprise you with your own earning capacity.
What are my long-term care insurance needs?
There are basically three ways to fund your long-term care needs: self-insure, qualify for Medicaid, or obtain long-term care insurance. Use this calculator to determine your potential long-term care needs and how long your current assets might last.
What are my needs for burial and final expenses?
Long gone are the days of being buried in a pinewood box. Funeral expenses can vary from several thousand dollars up to $15,000 and more depending on which services you select. Funeral homes and crematoriums provide a list of expenses some of which have been enumerated here. Use this calculator as a guideline to help estimate your burial and final expenses.
What are the chances of becoming disabled?
It may surprise you that just over 1 in 4 of today's 20 year-olds will become disabled before they retire.* Use this calculator to determine your chances of becoming disabled. * Source: Social Security Administration, Fact Sheet March 18, 2011
What are the tax advantages of an annuity?
Deposits into an annuity are not tax-deductible, however you don't have to pay taxes on the interest earned until you begin making withdrawals. This tax-deferral period can have a dramatic affect on the growth of an investment. Use this calculator to compare the tax advantages of saving in an annuity versus an account where the interest is taxed each year such as a CD.
What is the future value of an annuity?
Unlike a taxable account, a fixed annuity enjoys the benefits of tax deferral. In addition, many annuity companies offer a higher first year bonus rate. To be able to offer these higher rates companies typically require you to keep the funds invested for a period of time or suffer a surrender penalty for early withdrawal. Use this calculator to help determine your annuity value in a given year and compare it to a taxable savings account like a CD.
Which is better, comprehensive plan or high-deductible plan with HSA?
Health Savings Accounts (HSAs) were created by the Medicare bill signed by President Bush on December 8, 2003. HSAs are a form of medical savings account that must be accompanied by a high-deductible health insurance plan. HSAs allow individuals/employers to set aside money on a pre-tax or tax-deductible basis and then withdraw the money tax-free to pay qualifying medical expenses. Use this calculator to help compare a traditional, low-deductible health plan to a high-deductible health plan accompanied by an HSA to cover out-of-pocket expenses.
What is my life expectancy?
With medical advances and improved lifestyles, life expectancies in the United States are on the rise.* Use this basic calculator to help determine how many years you may need to plan for in retirement or how many years you may need to provide income to a surviving spouse or children. * Source: National Association of Insurance Commissioners, 2001
Certificate of deposit (CD) laddering strategy
Typically you can receive higher crediting rates on a CD if you commit to leaving your money with the bank for a longer period of time. This lack of liquidity causes many people to choose shorter-term CDs at the expense of receiving the higher interest rates. CD laddering is a strategy that gives you the benefit of receiving the higher-interest crediting rates of longer term CDs but still provide you with some liquidity. For example, rather than deposit $60,000 for a one-year period and renewing each year at a lower one-year rate, you could create a three-year ladder and put $20,000 in a one-year CD, $20,000 in a two-year CD and $20,000 in a three-year CD at the higher interest rates. After the first year, you take the one-year CD and purchase a new three-year CD. After the second year, you take the initial two-year CD and purchase a new three-year CD, and do the same with the initial three-year CD. Starting in year four, you will have the three CDs receiving the benefit of a three year rate but also have access to 1/3 of your money each year without penalty should you need it. Use this calculator to determine the additional interest you could earn with a CD laddering strategy.
Certificate of deposit (CD) analyzer
Use this calculator to help determine the potential interest growth and tax liability on your Certificate of Deposit.
Compare taxable vs. tax-free investment return
Many investments are taxed differently. For example with bonds, some may be taxed federally only, some may be taxed at the state level only, and some may be taxed both at the state and federal level. Use this calculator to help make an apple-to-apple comparison of varying investment returns.
How do expenses impact mutual fund returns?
It may surprise you how sales charges, management fees and lost opportunity cost can erode the total return on your mutual fund. Use this calculator to estimate the impact these charges may have on the growth of your investment.
How should I allocate my assets?
Over 90 percent of investment returns are determined by how investors allocate their assets versus security selection, market timing and other factors.* Use this calculator to help determine your portfolio allocation based on your propensity for risk. * Source: Brinson, Singer, and Beebower, 'Determinants of Portfolio Performance II: An Update,' Financial Analysts Journal, May-June 1991
Share Certificate analyzer
Use this calculator to help determine the potential interest growth and tax liability on your Share Certificate.
Share Certificate laddering strategy
Typically you can receive higher crediting rates on a Share Certificate if you commit to leaving your money with the bank for a longer period of time. This lack of liquidity causes many people to choose shorter-term Share Certificates at the expense of receiving the higher interest rates. Share Certificate laddering is a strategy that gives you the benefit of receiving the higher-interest crediting rates of longer term Share Certificates but still provide you with some liquidity. For example, rather than deposit $60,000 for a one-year period and renewing each year at a lower one-year rate, you could create a three-year ladder and put $20,000 in a one-year Share Certificate, $20,000 in a two-year Share Certificate and $20,000 in a three-year Share Certificate at the higher interest rates. After the first year, you take the one-year Share Certificate and purchase a new three-year Share Certificate. After the second year, you take the initial two-year Share Certificate and purchase a new three-year Share Certificate, and do the same with the initial three-year Share Certificate. Starting in year four, you will have the three Share Certificates receiving the benefit of a three year rate but also have access to 1/3 of your money each year without penalty should you need it. Use this calculator to determine the additional interest you could earn with a Share Certificate laddering strategy.
Taxable vs. tax-advantaged savings?
Tax-deferral can have a dramatic effect on the growth of an investment. Use this calculator to determine the future value of an investment being subject to income tax each year versus deferring the tax until withdrawal.
What is my risk tolerance?
On your way home from work, do you drive in the slow lane or the fast lane? Each person has a different propensity for risk. When investing, this risk propensity can be used to determine the percentage of your portfolio that is exposed to equities. Complete the following questionnaire to help determine your risk profile.
What is the dividend yield on a stock?
Dividends paid by a corporation can make up a significant portion of the cash flow generated by a stock purchase. Use this calculator to help determine your pre-tax and after-tax yield on a particular stock.
What is the long-term impact of increased investment return?
It may surprise you how much more you could accumulate in savings simply by repositioning assets to achieve potentially a slightly higher return. Even one, two or three percent return over a short number of years can make a dramatic difference.
What is the return on my real estate investment?
Purchase price, loan terms, appreciation rate, taxes, expenses and other factors must be considered when you evaluate a real estate investment. Use this calculator to help you determine your potential IRR (internal rate of return) on a property.
What is the value of a bond?
Bond values are very sensitive to market interest rates. For example, if you purchased bond with a stated/coupon rate of 10% and market rates had declined to 8% since you purchased the bond, then the value of your 10% bond in a market crediting 8% would be higher. Use this calculator to help determine the value of a bond.
What is the value of a call or put option?
A Call option represents the right (but not the requirement) to purchase a set number of shares of stock at a pre-determined 'strike price' before the option reaches its expiration date. A call option is purchased in hopes that the underlying stock price will rise well above the strike price, at which point you may choose to exercise the option. Exercising a call option is the financial equivalent of simultaneously purchasing the shares at the strike price and immediately selling them at the now higher market price. A Put option represents the right (but not the requirement) to sell a set number of shares of stock (which you do not yet own) at a pre-determined 'strike price' before the option reaches its expiration date. A put option is purchased in hopes that the underlying stock price will drop well below the strike price, at which point you may choose to exercise the option.
What is the value of compound interest?
Compound interest can have a dramatic effect on the growth of an investment. Use this interest calculator to illustrate the impact of compound interest on the future value of an asset.
Paycheck and Benefits
Convert my salary to an equivalent hourly wage
Use this calculator to determine what your hourly wage equates to when given your annual salary - it may surprise you what you make on an hourly basis.
Convert my hourly wage to an equivalent annual salary
Use this calculator to determine your equivalent annual salary when given what you get paid per hour - it may surprise you what you make on a yearly basis.
What may my 401(k) be worth?
It may surprise you how significant your retirement accumulation may become simply by saving a small percentage of your salary each month in your 401(k) plan. Use this calculator to estimate how much your plan may accumulate for retirement.
How much will my company bonus net after taxes?
A bonus from your employer is always a good, however, you may want to estimate what you will actually take-home after federal withholding taxes, social security taxes and other deductions are taken out. Use this calculator to help determine your net take-home pay from a company bonus.
How will payroll adjustments affect my take-home pay?
Contributions to a qualified plan, participation in a company-sponsored cafeteria plan, change in filing status, or number of allowances claimed will have a direct impact on take-home pay. For example, due to federal tax savings, contributions to a qualified plan do not translate into a direct dollar-for-dollar tradeoff on take-home pay. Use this calculator to help compare your current situation to what-if scenarios.
Should I exercise my 'in-the-money' stock options?
When your employee stock options become 'in-the-money', where the current price is greater than the strike price, you can choose from one of three basic sell strategies: Exercise your options, then hold the stock for sale at a later date (exercise and hold); hold your options and exercise them later (defer exercise); or exercise your options and immediately sell the stock (exercise and sell). This calculator will help you decide which choice will likely maximize your after-tax profits.
What is the future value of my employee stock options?
Your company-issued employee stock options may not be 'in-the-money' today but assuming an investment growth rate may be worth some money in the future. Use this calculator to help determine what your employee stock options may be worth assuming a steadily increasing company value.
What is the impact of increasing my 401(k) contribution?
It may surprise you how significant your retirement accumulation may be simply by increasing the percent of your salary that you save each month in your 401(k). Use this calculator to estimate how much more you could accumulate taking into account any employer match (if applicable).
What is the impact of increasing my 403(b) contribution?
It may surprise you how significant your retirement accumulation may be simply by increasing the percent of your salary that you save each month in your 403(b). Use this calculator to estimate how much more you could accumulate taking into account any employer match (if applicable).
What is the impact of increasing my 457 Plan contribution?
It may surprise you how significant your retirement accumulation may be simply by increasing the percent of your salary that you save each month in your 457 Plan. Use this calculator to estimate how much more you could accumulate taking into account any employer match (if applicable).
What may my 403(b) Plan be worth?
It may surprise you how significant your retirement accumulation may become simply by saving a small percentage of your salary each month in your 403(b) Plan. Use this calculator to estimate how much your plan may accumulate for retirement.
What may my 457 Plan be worth?
It may surprise you how significant your retirement accumulation may become simply by saving a small percentage of your salary each month in your 457 Plan. Use this calculator to estimate how much your plan may accumulate for retirement.
What is my projected required minimum distributions?
Current tax law specifies that once you reach age 70 1/2 you must begin making taxable withdrawals from your Traditional IRAs and many other retirement plans. These minimum distributions are calculated annually based on your age, account balance at the end of the previous year, marital status and spouse's age. If you do not meet the annual minimum distribution, you may be subject to a 50% penalty on your underpayment, plus ordinary income tax as the funds are withdrawn.
What is the impact of borrowing from my retirement plan?
Some qualified retirement plans include the option for qualifying participants to a take a loan against their retirement account balance. Many people borrow from their retirement plan to pay off high-interest debt or to make a major purchase. Although the borrowing rates may be favorable, usually 1-2% above the prime rate, the impact on future retirement earnings needs to be taken into account. This calculator can help you make a more informed decision about whether a loan is the right approach for your financial situation. During the loan repayment period, if you elect to suspend ongoing contributions to the plan, your future retirement account balance may be further impacted. This analysis does not take into account any loan initiation fees that might apply. It also does not consider the impact of taking a withdrawal from the plan for financial hardship (purchase of a primary residence, college tuition, funeral expenses, etc.). Contact your plan administrator for details on the loan and withdrawal options available to you.
What is the impact of early withdrawal from my 401(k)?
Many people feel the need to withdraw funds from their 401(k) plan due to hardship or other emergency. Use this calculator to help determine the impact of lost contributions and retirement funds due to early withdrawal.
What will my qualified plan(s) be worth at retirement?
It may surprise you how significant your retirement accumulation may be simply by contributing regularly to a qualified plan. Use this calculator to estimate how much you may accumulate by saving in a qualified plan.
Evaluate my company pension payout options
When you reach retirement, and if your company provides a pension program, you will be offered a number of payout options. Typically, they will be the Single Life and the Joint Survivor payout options. Single Life pays a higher monthly amount but stops paying once you die, whereas, the Joint Survivor will pay a lower monthly amount but will continue until both you and your spouse are deceased. This calculator will help evaluate total payout amounts under both scenarios given specified life expectancies.
How do I maximize my employer 401(k) match?
How much can I contribute to an IRA?
Many employees are not taking full advantage of their employer's matching contributions. If, for example, your contribution percentage is so high that you obtain the $17,500 (year 2013) limit or $23,000 (year 2013) limit for those 50 years or older in the first few months of the year then you have probably maximized your contribution but minimized your employer's matching contribution.
How much retirement income may my IRA provide?
Your retirement income can vary widely depending on what type of IRA holds your savings and what assumptions you make about return and tax rates during the accumulation and withdrawal periods. Use this calculator to help estimate your monthly and annual income from various IRA types.
I'm self-employed, how much can I contribute to a retirement plan?
Compensation for a self-employed individual (sole proprietor or partner) is that person's earned income.* The starting point to determine the individual's earned income is the net profit amount from the Schedule C (or Schedule K-1 for a partnership). Use this calculator to determine your maximum contribution amount for the different types of small business retirement plans, such as Individual(k), SIMPLE IRA or SEP-IRA. *Earned Income = Net Profit – 1/2 of Self-Employment Tax – Contribution
Net unrealized appreciation (NUA) vs. IRA rollover?
Consideration of NUA strategy is important if you are distributing highly appreciated employer securities from your prior employer's qualified plan, such as 401(k). Cost basis, the value of the employer contribution on your behalf is subject to ordinary income tax upon distribution. In addition, the 10% early distribution penalty may apply unless you have an exception (i.e. attained age 55 or older and separated from service). Taking in kind distribution allows the appreciation (NUA) above the cost basis to be taxed at the more favorable capital gains tax rate. For this reason, upon separation from service it may be more tax advantageous to transfer the employer securities to a regular taxable account instead of rolling the asset into an IRA where future distribution will be taxed as ordinary income.
Should I convert to a Roth IRA?
Roth IRA is a great way for clients to create tax-free income from their retirement assets. Yet, keep in mind that when you convert your taxable retirement assets into a Roth IRA you will generally pay ordinary income tax on the taxable amount that is converted. The conversion amount is not subject to the 10% early distribution penalty. Your tax-free potential is maximized if you pay the taxes from your current income or personal savings and not from your IRA. Individuals of all income levels are eligible to convert to a Roth IRA.
What are my lump sum distribution options?
You've spent a long time accumulating funds in your retirement account. When you retire and take distribution of your funds you have many options to consider.
What are my Stretch IRA distributions?
By naming a beneficiary on your IRA account it will provide the beneficiary the opportunity to "stretch" out the IRA proceeds over his/her life expectancy. This gives the beneficiary more time to take advantage of tax-deferral status of the IRA assets. Use this calculator to provide a hypothetical projection of the required minimum distributions for you and your beneficiary. Please keep in mind that distributions will be subject to any applicable federal and state income taxes.
What is my current year required minimum distribution?
Current tax law specifies that once you reach age 70 1/2, you must begin taking RMDs annually from your IRAs and other retirement plans. Generally, the RMD amount is determined based on your prior year's IRA balance of all of your IRA assets divided by your life expectancy. If RMDs are not taken annually, you may be subject to an additional 50% penalty for the amount you were supposed to take. Please note this tool is designed to provide an estimate for individuals age 70 1/2 or older.
Are my current retirement savings sufficient?
One method of retirement planning is to project what you are currently saving and have accumulated to date and see if you will have enough to meet your retirement objectives. Use this calculator to determine when/if the money will run out during retirement and it will recommend additional savings if required.
Compare a Roth 401(k) to a Traditional 401(K)
Your retirement income can vary widely depending on what type of account holds your savings and what assumptions you make about return and tax rates during the accumulation and withdrawal periods. Use this calculator to help compare employee contributions to the new after-tax Roth 401(k) and the current tax-deductible 401(k).
How does inflation impact my retirement income needs?
It may surprise you how much inflation can erode purchasing power. Use this calculator to estimate how much more income you may need when factoring in inflation between now and until you reach retirement to keep the same standard of living that you may have today.
How much retirement income may my 401(k) provide?
It may surprise you how significant your retirement accumulation may become simply by saving a small percentage of your salary each month in your 401(k) plan. Further, it may be useful to estimate your future monthly income generated by these savings and what that means in today's dollars.
How much will I need to save for retirement?
Retirement can be the saddest or happiest day of your life. This pre-retirement calculator will help you determine how well you have prepared and what you can do to improve your retirement outlook. It is important that you re-evaluate your preparedness on an ongoing basis. Changes in economic climate, inflation, achievable returns, and in your personal situation will impact your plan.
How will retirement impact my living expenses?
Your living expenses may increase or decrease at retirement but will likely not stay the same. You may travel more, reduce business expenses such as eating out and transportation costs, perhaps your house will be paid off. Use this calculator to help compare living expenses now from the day you retire. This will also help you to plan your saving requirements for the day you retire.
I'm retired, how long will my savings last?
Due to increasing life expectancies, many are running into the problem of outlasting their savings. Use this calculator to help determine when your retirement savings account may be depleted given a specified monthly income target. You may currently be in receipt of a company pension or other fixed income such as Social Security to help supplement your retirement savings account.
Should I convert discretionary expenses to savings?
It may surprise you how much you can accumulate for retirement simply by foregoing a few luxuries such as a one-time purchase of a boat or cabin, or trimming back recurring monthly expenses such as eating out, movies, magazine subscriptions, cable tv programming, video rentals, vending machines, etc. Use this calculator to determine how much you could accumulate for retirement by saving instead of spending.
Social security retirement income estimator
Depending upon your current earnings, Social Security can be a significant part of your retirement income. However, many factors will impact the benefit you may receive. Use this calculator to approximate your Social Security benefit. For a more accurate estimate, taking into account your earnings history, contact the Social Security Administration at 1-800-772-1213 or visit www.ssa.gov.
When should I begin saving for retirement?
A penny saved is a penny earned, but a penny saved today is a penny potentially earning more. Use this calculator to determine how much more you could accumulate at retirement by beginning your savings plan today rather than waiting.
How much should I save to reach my goal?
What are you saving for: a computer, car, boat, summer home, down payment? Use this calculator to determine what you need to save on a regular basis to have the funds ready when needed.
Becoming a millionaire
It may surprise you how quickly you can accumulate a million dollars. Use this calculator to determine the annual amount you would have to set aside each year to reach a million dollars and reach your goal to be a millionaire.
Calculate rate of return
The rate of return (ROR), sometimes called return on investment (ROI), is the ratio of the yearly income from an investment to the orignial investment. The initial amount received (or payment), the amount of subsequent receipts (or payments), and any final receipt (or payment), all play a factor in determining the return. Use this rate of return calculator to calculate these returns.
How do taxes and inflation impact my investment return?
Taxes and inflation can have a dramatic effect on the growth of an investment. Use this investment return calculator to determine the impact taxes and inflation can have on the purchasing power of your investment.
How long until my savings reach my goal?
Compound interest can have a dramatic affect on the growth of a single deposit. Use this calculator to determine how many years an existing savings account will take to reach your stated objective.
How long will it take to double my savings?
Compound interest can have a dramatic affect on the growth of a single deposit. By dividing 72 by your investment return you can determine the amount of time required for your money to be worth about twice as much as it is today.
Income generated by a savings plan
Saving regularly can help you achieve your future income goals. Use this calculator to determine how much income an existing balance and/or a regular savings plan can provide.
Save now vs. save later
A penny saved is a penny earned, but a penny saved today is a penny earning more. It is important to start saving as soon as possible for events such as retirement due to the impact of compounding. If you start saving now you will need to save considerably less than if you wait a few years. Use this calculator to determine how much extra you will need to save if you wait.
What could my current savings grow to?
Compound interest can have a dramatic effect on the growth of series of regular savings and initial lump sum deposits. Use this calculator to determine the future value of your savings and lump sum.
What is the effective annual yield on my investment?
The number of compounding periods per year will affect the total interest earned on an investment. For example, if an investment compounds daily it will earn more than the same investment with the same stated/nominal rate compounding monthly. Use this calculator to determine the effective annual yield on an investment.
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