I went through the retirement planning "school" and then used the retirement planning calculator. Needless to say, I just don't believe the results, especially when I look at the results after I did a recommended modification.Any suggestions on what's happening or should I just ignore the Fool in this case?NOTEPAD copy of what I got follows:>>>>>>ORIGINAL INPUT YIELDED THIS RESULT:Your living expenses after retirement will be funded until you are 57 years old. Thereafter, income from Social Security and pensions, if any, will only cover 39% of your living expenses. To fund your retirement for 42 year(s) and 0 month(s) and still leave $0 for others to inherit, you and your spouse will need to:Decrease your current spending in order to increase your savings to $-0 per month. Decrease your spending during retirement by $791 per month -or- Work for an additional 2 year(s) before retiring. -or- Work during retirement and earn roughly $1,528 per month for 8 years. -or- Invest at a higher rate of return. -or- Shift your investments into tax-deferred investments. -or- Decrease the amount you wish to own at your death. -or- A combination of the above. SO I CHANGED RETIREMENT AGES BY 2 YEARS AND GOT:Congratulations! You will able to pay your expenses throughout retirement and leave $20,801,782 for others to inherit. NOT BELIEVING THAT WORKING 2 MORE YEARS WOULD NET ME $20.8M, I THEN RESET AND CHANGED RETIREMENT EARNINGS FOR 8 YEARS AND GOT:Congratulations! You will able to pay your expenses throughout retirement and leave $274,616,022 for others to inherit. I DEFINETLY DON'T BELIEVE THIS!!!!BASED UPON THE TWO "CHANGES" I DON'T EVEN BELIEVE THE INITIAL RESULTS.ANYONE HELP?????THANKS,JERRY
$274 Million "for others to inherit". Cool! Put me on the list of "others", OK?Seriously, jerrykrishart, I can imagine a possible cause of this, un, windfall. If you used an unreasonably high number for return on your retirement investments, like 80% per year. Or perhaps you entered some other number that was unreasonably high. Without sitting behind you and watching you fill in the screen, I can't say for sure. I suggest you look over the whole process again, or get someone else to go through it with you.Hope this helps.Michael
Thanks and I'll put you on the waiting list to inherit.What I used for rate or return was 20% (using a lower number than the Foolish Four 25 and 10 year rolling averages just to be safe).I used Quicken's planner and had to make about $45K per year vs. $18K from the Fool's source, even so.....I've been given other sources to check out, such as CNNfn, before I check with a planner.What we're trying to see is if we can "move to our mountain home and slow down our life's pace" now vs. later.Thanks again.
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