I'm trying to figure out if I am saving at the right rate to retire comfortably.I'm only 25 and I know there are others who didnt start saving until they were 60, but I have this money phobia thing...and I dont think cat food tastes very good, not even the Fancy Feast kind.I'm in a career track where I cant expect a 401K or pension - not self employed and I switch jobs too often. Plus I have NO FAITH that the Social Security will be there for me. I've put in the $2000 per year (2 yrs) that the IRA allows and I have another fund that I also try and put the $2000 into (3 yrs), and I also DRP with Pfizer at $50 per month..part of me feels like I should be doing more.If anyone knows a calulator or worksheet out there when I can throw in the numbers and have it spit something out for "if you keep saving at the same rate you will have XX amount in 30 years" or something like that.I know this is silly, but did I mention how I feel about Fancy Feast?Thank you in advance!PS. If anyone also knows of a list of SUPER DRPs - companies that let you buy the first share with them AND dont charge on regular purchases - I would appreciate it also! (There are so many great stocks, why not choose among the ones that are the best plans??)
If anyone knows a calulator or worksheet out there when I can throw in the numbers and have it spit something out for "if you keep saving at the same rate you will have XX amount in 30 years" or something like that.*****************************************************Here's a site that you can use for your calculations. http://www.interest.com/hugh/calc/
Kiplinger's Magazine Online also has a comprehensive suppy of financial calculators.Sorry I don't have the web address handy. Just type "Kiplinger's Personal Finance Magazine" in your search engine, go to the home page and on the right, down a bit, click on "calculators."
for a good calculator check out this web-site:http://188.8.131.52/for a list of companies that ofer drps without any fees go to www.netstockdirect.comin the left row look for quick search and select no purchase fees - this will give you a list of companies that offer drps without any feesgg
Kiplinger's Magazine Online also has a comprehensive suppy of financial calculators.http://www.kiplinger.com/tools/
rfoster,I would like to raise one point, which you may have already done but didn't say so in your post. Before you can determine if you are saving at the right rate, you first must have an idea of how much money you will need to fund your retirement. . . let's say at age 65 (40 years from now). The way I would do this is to pretend you were 65 years old today and calculate how much money you would need to fund your retirement say over the next 30 years. If you calculate that you need $1 million to fund your retirement at age 65 today, what amount would be equivilent to $1 million in terms of purchasing power 40 years from now. Basically, you need to calculate the future value of $1 million in 40 years making an assumption for inflation over that period of time. At an assumed inflation rate of 3% over the next 40 years, I calculate $1 million today is the present value of approximately $3.3 million in 40 years (someone correct me if I am wrong).The links referenced in the previous responses to your post should help you do this.Hope this helps.Dave
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