$4700/mo is considered a 'frugal' lifestyle income? That feels...I don't know...out of touch?
Show HN: Investment Calculator – A simple retirement calculator
201–210 of 218 posts
Re: Show HN: Investment Calculator – A simple retirement calculator
#202$4700/mo is considered a 'frugal' lifestyle income? That feels...I don't know...out of touch?
It probably will be by the time you retire, assuming your not close to it already.
Re: Show HN: Investment Calculator – A simple retirement calculator
#203$4700/mo is considered a 'frugal' lifestyle income? That feels...I don't know...out of touch?
It probably will be by the time you retire, assuming your not close to it already.
Sure, that's a reasonable point to consider, but this website is clearly not factoring in inflation's effect on income value. It says the same thing whether you want to retire this year or in 30 years.
Re: Show HN: Investment Calculator – A simple retirement calculator
#204Earlier quoted context omitted.
A good guesstimate: 1. Figure out your current lifestyle expenses (you can track this over time if you use mint.com or other websites) 2. Subtract your mortgage if you plan to have it paid off by retirement 3. Add in fudge factors for healthcare expenses and increased or decreased discretionary expenses, depending on the lifestyle you think you will live As with any planning, you can stare at the numbers forever and…
Your lifestyle/spending in your 20s and 30s has little to do with your retirement lifestyle/spending. Especially if you're rasing children...
And is that an argument not to plan at all? Of course you can't pinpoint an exact figure, but it still pays off to plan even on a ballpark figure.
Re: Show HN: Investment Calculator – A simple retirement calculator
#205x: How much do you need to live for a year? y: How much do you need to retire forever? y = 25x
Why do you assume no returns in those 25 years of retirement?
He does. He says "forever" not 25 years.
(Research has shown that 4% drawdown of your wealth every year combined with an investment into stocks (assets with 3.5-4% post-inflation return) will generally preserve your capital stock - and even in the worst cases won't completely erode it.
100%/4% = 25
Re: Show HN: Investment Calculator – A simple retirement calculator
#206Pretty cool! I use the "Retirement Planner" from Personal Capital (like Mint but for investments)
Some of the notable features are:
- Adding future income events (social security, pension, etc)
- Inflation adjusted.
- Set future spending goals (buying a house, wedding, health care)
- You can also save different simulations and get a percentage chance of hitting that goal. I have one for if Social Security doesn't exist when I retire, another one for early retirement, etc.
It's free to sign up. https://personalcapital.com/
Re: Show HN: Investment Calculator – A simple retirement calculator
#207Recommended Savings for 19yo ist 10k? After College it is more like 30k debt!
It is a nice idea but not realistic with the recommendations imho.
Re: Show HN: Investment Calculator – A simple retirement calculator
#208Earlier quoted context omitted.
Wow, that's pretty crazy - ~5% bonds for conservative and ~7-8% for aggressive would have been more appropriate in my opinion. And I feel even those numbers may be a little optimistic. Currently it's more like "what if you have a great market year every year until you retire" or "what if you can reliably beat the market" - neither of which is likely to happen.
To be fair the total annualized return of the S&P 500 over long periods is roughly 10%. You don't have to reliably beat the market to reach those numbers. It's interesting to play around with: https://dqydj.com/sp-500-return-calculator/
On the other hand, the Nikkei's still underwater from its peak almost 30 years ago, and has been more or less flat since 1995.
Re: Show HN: Investment Calculator – A simple retirement calculator
#209Earlier quoted context omitted.
You can get guaranteed 11% returns at https://www.twino.eu/ I used it for a while; it did work and their published financials are solid, but being happy with some risk I decided stocks where a better play. Still, it's a useful baseline.
tino shows a default or delayed rate of around 25%. That means your returns are not risk free.
That doesn't matter, because for the highest rated loans (Buyback and PG) Twino guarantee payments even in the case of defaults or delays.
Re: Show HN: Investment Calculator – A simple retirement calculator
#210Earlier quoted context omitted.
You can get guaranteed 11% returns at https://www.twino.eu/ I used it for a while; it did work and their published financials are solid, but being happy with some risk I decided stocks where a better play. Still, it's a useful baseline.
That's not what "guaranteed" means.
In what sense? The company guarantees you will get paid back for the loans at 11%. For higher rates there is risk, but that isn't what I'm talking about.