The Green calculator entry above is correct in that most of the free calculators on the Web are useless because they are all using the same formulas, but in different ways. However, the 3 Green Calculators are as limited as the rest because they are overly simplistic and don't show the total retirement picture.
One different calculator that does consider the entire picture is http://i-orp.com.
ORP models the progressive Federal income tax code and produces an optimal withdrawal schedule from all retirement savings accounts (IRA, Roth IRA and Tax-deferred.
James Welch
of NV
@
Oct 07, 2009 16:19:23 PM
Green Retirement Calculator
Retirement calculators, with the exception of the new Green Retirement Calculator, are worthless. Worse than worthless, they are misleading, and cause individuals to save more than is necessary and work many years longer.
The reason they are worthless, is because they are all based on the same worthless formula, for calculating retirement savings needs - your salary. Your salary is irrelevant when it comes to calculating how much savings you need for retirement.
How much savings you need for retirement is determined by how much you will spend in retirement. The new Green Retirement Calculator does just that, it calculates how much savings you need, by how much you will spend in retirement. You can compare the worthless Traditional method vs. the Green method at the Green Retirement website.
http://www.iplanretirement.com
The good news for individuals who have recently lost large sums in the stock and housing markets, is that they don't need as much as they believe to successfully retire, and in many cases will not have to delay their retirement.
Ramsay
of CA
@
Dec 09, 2008 11:33:52 AM
Retirement Prospects
An earnest caveat!
A recommendation is to read the book, "WHEN I'M 64" by Theresa Ghilarducci, formerly a professor of Economics at Notre Dame, now a professor at the New School of Social Research(?) in NYC. We met recently, and I think she is well informed. The WSJ has made positive commentary on her testimony in Congress, and I feel she is right on. It is an enlightening treatise on how our Defined Benefit Plans and Social Security will (or have) let us down.
As an 80-year old retiree who has had two Monte Carlo simulation studies done ten years ago, let me say the article commentary regarding estimated rate of earnings on investments, income needed or desired after retirement, inflation, etc., have mostly been under-estimated by the various consultants, so be aware, and do several different studies. Remember, "statistics are like are like a bikini, what they show is often interesting, but what they cover up is usually vital."
James Welch of NV @ Oct 07, 2009 16:19:23 PM
Ramsay of CA @ Dec 09, 2008 11:33:52 AM
Don of CA @ Dec 08, 2008 14:09:48 PM
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