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I think the calculators are good for people who are just beginning to think about retirement savings. I hope no one depends completely on them.
I did my retirement planning using a spreadsheet I developed myself, starting in 1999 and improving it slowly, to calculate my estimated income from various sources and my expenses for 40 years out. It's highly personalized, so it wouldn't work for anyone else, but everyone could create their own version. I can tweak it to see 'what ifs' such as what if I take money from my 401k and buy an immediate annuity, what if I make a down payment on a house, etc. I used conservative estimates for inflation and return.
I did my retirement planning using a spreadsheet I developed myself, starting in 1999 and improving it slowly, to calculate my estimated income from various sources and my expenses for 40 years out.
Sounds like a very powerful spreadsheet. Now I wonder, 40 years out, what will be the cost of a loaf or bread or a gallon of gas?
I think the calculators are good for people who are just beginning to think about retirement savings. I hope no one depends completely on them.
I did my retirement planning using a spreadsheet I developed myself, starting in 1999 and improving it slowly, to calculate my estimated income from various sources and my expenses for 40 years out. It's highly personalized, so it wouldn't work for anyone else, but everyone could create their own version. I can tweak it to see 'what ifs' such as what if I take money from my 401k and buy an immediate annuity, what if I make a down payment on a house, etc. I used conservative estimates for inflation and return.
I think this the best way. That way you understand what goes into the calculations and focus on your own situation. It keeps you from gettingconfused by a bunch of stuff that doesn't apply. There really is no substitute for doing the work yourself. Anything else just leaves you vunerable to to the scammers out there all too ready to "help" you while pocketing a sizeable chunk of your assets. The last couple of years give plenty of evidence.
I think the calculators are good for people who are just beginning to think about retirement savings. I hope no one depends completely on them.
I did my retirement planning using a spreadsheet I developed myself, starting in 1999 and improving it slowly, to calculate my estimated income from various sources and my expenses for 40 years out. It's highly personalized, so it wouldn't work for anyone else, but everyone could create their own version. I can tweak it to see 'what ifs' such as what if I take money from my 401k and buy an immediate annuity, what if I make a down payment on a house, etc. I used conservative estimates for inflation and return.
Ditto here on the spreadsheet. I tweak mine too and have performed multiple "what-Ifs" on it. I too use conservative income estimates and a higher inflation rate and expenses. I no longer input returns, I display multiple returns instead. My goal here was to see how low of a return would still ensure my plan will survive. I stopped worrying about the last downturn when that rate happened to be 2%.
As with any type of financial calculator, there needs to be some independent thinking. The calculators only take into consideration some facts and assumptions, you need to look at your own situation realistically.
Basiclly the porblem is the proof in teh pudding when it gets eaten.. Otherwsie assumptions are a guess. Right now the proof in the pudding is your condition after this crash. if your Ok then you did a good job ;if not its time to rethink.But it can happen again or recrash.
I have no reason to doubt Forest Beekeeper, especially as he is speaking from experience. If one's tastes are not too lavish, a halfway decent pension may be all that is necessary, provided it is indexed for inflation. Forest Beekeeper does not mention that and I hope for his sake that his pension is, in fact indexed. If it is not, he might not be making the same statement ten years from now.
All that brings up the point that most of the discussion so far has focused on the income side of retirement planning. I think just as much effort needs to go into the expenditure side. What assumptions are we making about how much we will need? If it seems that we might not be able to come up with the huge and scary amounts bandied about, then we need to look at the assumptions. Maybe a smaller house and cheaper car will serve us just fine in retirement, for example. Which elements of our lifestyle are based on ego and which ones are truly tied to our well-being and satisfaction?
Anyway, good thread and good responses in a complex area.
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"All I truly needed was my pension."
