Individual 401k Savings Calculator
A Better Individual 401k Savings Calculator. Try Bob's Free Retirement Calculator and connect to a trusted financial advisor near you.
When you look at most basic individual 401k savings calculators, you're going to see places where you enter very basic information. What's your annual salary? How much of that amount are you contributing? You'll be asked how old you are and at what age you plan to retire, how much you have already saved and how much your employer will contribute as well. All of this information that you enter into an individual 401k savings calculator seems like it should give you at least a reasonably accurate estimate of how your money will grow, right?
To an extent, yes, but seems is the operative word. On that type of an individual 401k savings calculator, there are often a lot of variables that you have to estimate. For example, there is typically a field for you to enter the projected rate of interest on the account - a value that can change over time. You will also have to estimate annual increases in your salary, so the amount that is calculated could change dramatically if you lose your job or change jobs (which will also affect employer contribution amounts). Finally, the calculated amount often is not going to take inflation into consideration.
As a result, using this type of an individual 401k savings calculator is going to give you a sense of how much your savings will grow over time, but it is difficult to tell whether or not that sense will be accurate. Simply put, if you want to be able to take control of your retirement savings, develop an accurate sense of the money that will be available to you when you retire and to determine what you can do to ensure that the money that you need to retire will be ready when you need it, you need a more effective calculator.
The retirement calculator that you can download on this page is a better individual 401k savings calculator. With it, you won't just be able to look at a straightforward amount; instead, you will be able to look at the ways in which small changes that you make will affect your retirement savings. Rather than investing more into your 401k, you will be able to enter the amounts and see whether or not that change would be the most valuable to you or if you would be better off saving with an IRA or to buy into a mutual fund.
By calculating your retirement savings with this calculator, you will also be able to do more than just look at general projected amounts. You will be able to enter specifics about your 401k savings plan, interest rates and look at estimates that factor in inflation and how it will affect the money that is available to you when you retire. More importantly, however, when you download and use our retirement calculator - as an individual 401k savings calculator and to look at other savings strategies - your contact information will be forwarded to a financial advisor in your area.
That financial advisor will give you a chance to calculate your savings and look at a couple of possible alternatives and then be there to answer the questions that you have about whether or not you are saving for retirement in a way that will benefit you. He or she can talk with you about your goals, risks and benefits of certain savings and investment strategies and help you to develop a better strategy and plan for investing in your future.
Why settle for a basic individual 401k savings calculator when you can have so much more?