http://dreambigsite.org/ en aowen@icmarc.org Copyright 2012 2012-02-03T21:53:09+00:00 http://thedreambigsite.org/articles/TheSkepticalSaversSimpleStepstoFinancialIndependence/ http://thedreambigsite.org/u/322/ Let me introduce myself: I’m a young professional who recently relocated to the Washington, DC area from Nashville, Tenn. My income increased as a result of the move — but so did my cost of living. The city is full of opportunities and I want to experience them all, while also building up my savings.   I will chronicle my journey to financial independence by saving $2,000 over the next six months. Please note, I started with a balance of $0. I see that Brandon is also in pursuit of $2,000 in savings — over 4 months. Maybe I can pick up a few tips from him.      Month 1   Like many young professionals, I’ve often found myself living paycheck to paycheck; with little to no money left over to pay off outstanding credit card balances or to even think about saving more toward retirement. I’ll admit, my finances haven’t always been in order, and I was more than a little skeptical to set aside money for anything other than a Saturday night out on the town. I’m 25, why would I need to think about saving? But then, reality set in … I’m 25 and have not built up any savings. That means no savings for travel, no savings for a rainy day or emergency fund, and certainly no savings for my eventual retirement. So, how can I build up my savings over time?   As a young person, it’s easy to get distracted when it comes to saving, but there are some simple ways, that you may have never considered, to save money on a regular basis. Transfer funds into a separate savings account, using your bank’s online transfer feature. As soon as you get your paycheck, have your bank take a percentage of your payment out of your primary account and transfer funds into your savings account. That way you won’t miss the leftover funds or spend it frivolously. Choose an amount you feel comfortable with — generally, I deposit around 20 percent of my paycheck. This month, I transferred $500 to my savings account ($200 went toward my credit card payment; the other $300 remains in my savings account). Keep in mind that you should consistently monitor your accounts and set up safeguards designed to prevent identity theft and other fraud. Use your bank’s “keep the change program.” Some banks have a rewards program in which you can opt to round your tab to the next whole dollar and keep the remaining change. Of course, it’s better to avoid spending your money in the first place. But when you must, this might work for you. This month I saved $176.00 by using my bank’s program. Assess your monthly spending. Look at your monthly budget and decide what expenses can be minimized. For example, this month I reduced my “grooming” budget by simply getting a polish change every month for $7 as opposed to a full manicure for around $20. Total savings this month: $476.00 Savings balance: $476.00 (Stay tuned for my total savings next month.) AC: 0112-5454 Saving 2012-02-03T20:53:09+00:00 http://thedreambigsite.org/articles/decluttered-investing/ http://thedreambigsite.org/u/320/ The beginning of a new year is as good a time as any to untangle your investments.   If you’re like most people, it’s easy to get overwhelmed.   It’s not too different from the challenges in organizing your time, your email, your closets, your garage. Too much clutter!   In the case of your investments, you may…   1.  Own too many – when you may be nicely diversified with just a small number of funds instead.   2.  Have them spread across too many accounts – making it hard to know what you own, why you own it, and how to manage it.   3.  Dwell too much on the past – even though most of the time it’s not likely to be repeated or it’s irrelevant.   4.  Think too hard about when to invest – even though you may be better off setting up a schedule and going on auto-pilot.   5.  React too quickly to media “noise” – even though most experts and talking heads really don’t know what’s going to happen.   6.  Make too many changes – even though odds may be you’d be better off doing nothing.   In the coming weeks, I’ll expand on each of these, including my own challenges. And I’ll try to do so without jargon – especially since in recently explaining an investing concept to my wife, she responded “Not only do I not understand what you just said, I don’t know the meaning of half the words you said.”   Stay tuned. AC: 0112-5453   Investing 2012-01-26T14:30:12+00:00 http://thedreambigsite.org/articles/i-resolve-to-save-x-amount-for-retirement-by-x-date/ http://thedreambigsite.org/u/319/ At the start of each new year people make resolutions to gain or lose something, e.g., “I resolve to lose x amount of weight, by x date.” They may even resolve to reach a certain amount in general savings by a certain date. But you rarely hear resolutions to save specifically for a comfortable retirement, yet it’s something most of us would say we desire.   So how do you make saving for a comfortable retirement a reality? Begin by planning for it. Here are three ways you can get started. Save early and often. If your employer offers a retirement plan, you can save regularly, because your contributions will be made directly to your retirement savings account through payroll. You won’t need to write checks or visit a bank to deposit your savings. You simply choose the amount or percentage of your income you want to contribute, and you’re on your way. Consider also saving in an individual retirement account (IRA). The earlier you start saving, the more time you will have to save before retirement. Pay down debt and curb spending. Paying for debts that you’ve accumulated can rob your retirement savings efforts. Instead of paying for things that you could delay, find at a lower cost, or better yet, do without, cut back on spending and increase contributions to your retirement account instead. Determine how much money you will need to enjoy your retirement. What will it take to live out your comfortable retirement? Start by using a retirement calculator like this one on msnmoney.com, which will take your current situation and future expectations into account. Consider also using the services of a financial planner for additional guidance. The Financial Planning Association and National Association of Personal Financial Advisors are good starting point to search for one. Fill in the blanks. How much do you resolve to save for retirement, and by when? Have any tips on how to achieve it? Share them here. While we believe the external websites listed above are reputable, we neither endorse them nor can vouch for their complete accuracy. AC: 0112-5425 Retirement 2012-01-18T14:40:14+00:00 http://thedreambigsite.org/articles/expecting-cash-from-uncle-sam-/ http://thedreambigsite.org/u/263/ If you got $3,000 dollars in the mail, what would you do with it?   Well, for the average American, that’s a question many will have to figure out the answer to very soon (if they haven’t already). CNNMoney reports that the average tax refund in 2011 is $3,129.    Now I don’t know about you, but $3,000 is a lot of money to me, and lots of money deserves a plan to make sure you maximize it.  Debt – I would suggest using a portion of it to pay down current debt. Like those Christmas gifts that are preventing you and your credit card company from being BFFs again. Give the credit card company a little extra, if you can’t pay it off with one payment. Savings – I know it could be tough to save your entire tax refund. I don’t expect you to save it all, but saving a portion of it would make a lot of cents (pun intended). Investing – I won’t even try to provide investing tips here because I don’t know much about that.  But whether it’s putting something in your retirement plan or another type of tax-advantaged savings, plan for the day you plan to retire. Enjoy – It’s rare that you will hear “have fun” on a financial wellness site like this. But let’s be realistic, you will spend money on yourself whether I tell you to or not. If you wait ‘til after you have done steps 1-3 first, I guarantee you’ll feel better about it. What plans do you have for your tax refund this year? Saving, Investing 2012-01-04T13:42:00+00:00 http://thedreambigsite.org/articles/winning-the-home-financing-game/ http://thedreambigsite.org/u/65/ You’re thinking about buying a home. In fact, you’ve been looking around and found one you love, and now you’ve got plans for where the big-screen TV will go and what color to paint the walls.   All that’s left is the financing, and surely you can figure that out — you just need to be a mortgage expert, a careful reader of fine print, a credit score researcher, a financial analyst, a budget designer, an insurance adjuster, a contract attorney, and a skilled negotiator.   Sound like a fantasy? Unfortunately, most of us are working with a team of one (ourselves), and oftentimes an amateur one at that, when it comes to home financing. But a tool available from Lending Tree can give you one thing that might help you do your best to score an affordable new mortgage or a great refinancing deal — an online Loan Coach.   The Loan Coach site offers a mortgage check-up that can help borrowers evaluate a current loan, basic information for those who are just getting started on purchasing their first home, and a variety of tools to help you compare offers.   Obtaining or refinancing a mortgage can be very intimidating, but taking the time to research and arm yourself with information can save you a lot of trouble later on.   Of course, if you do run into trouble paying your mortgage for any reason, you’ll need to rely on other resources. Check out “Help for Homeowners” for a quick reference guide to steps you can take and organizations you can tap if you need help staying in your home. Loans, Saving, Credit 2011-12-28T12:59:08+00:00 http://thedreambigsite.org/articles/saving-money-on-groceries-in-college/ http://thedreambigsite.org/u/317/ Going into my sophomore year of college, I was very excited to live off campus. I felt independent. I had my own car and an apartment; I had it all and thought living on my own was going to be great. When reality hit me, I realized that what I actually had was a lot of responsibility.   I realized quickly that living off campus was turning out to be an expensive arrangement. I didn’t have all of the benefits that staying in a dorm had provided me. I had to pay utility bills, buy groceries, and cook my own food.   I’m not much of a cook, but when I started getting the hang of it, I found myself cooking all the time. I would cook three big meals a day to satisfy my hunger. I would go to the store every two weeks and spend over $100 on food. Once money started getting tight, I had to make drastic choices between paying for groceries and paying for gas. Thinking back, it was a difficult time. Now that I’ve learned my lesson, I’d like to pass on some methods that helped me save money and which I now use consistently. Hopefully they will help you too! Make a grocery list – Make an organized list of all of the food you will need for your meals before you go to the store. While shopping, write down prices of items on this list. Bring a calculator – Bring a calculator to the grocery store so you will know just how much you are spending. Make a budget and try not to go over it. Make a weekly meal calendar – Make a calendar of the meals you are planning to cook and stick to the schedule. Sign up for a savings card – Savings cards can help you save a great deal of money when you shop for groceries. Of course you can opt not to obtain one of these cards if you are concerned about how retailers might use your information. Buy store-brand groceries – Not all foods you eat have to be name brand. The store-brand green beans can easily substitute for its name brand counterpart. Try it and see how much you save. Limit restaurant outings – Reduce eating out to no more than once or twice each month. The cost of eating in a restaurant once you factor in food and tips really adds up! If possible, eat in your school cafeteria – Save money by eating meals on campus. AC: 1111-5260 Saving 2011-12-22T17:40:23+00:00 http://thedreambigsite.org/articles/save-now-so-you-can-play-later-/ http://thedreambigsite.org/u/316/ No matter how much you love your job, you will want to retire someday. To counter your future dependence on Social Security payments, you have probably (hopefully) already begun contributing to an employer-sponsored retirement plan or some other retirement investment option with a certain percentage of your pre- or after-tax dollars.   While that’s a great start, let’s explore ways you can find extra money to contribute to your retirement account now so that you can live comfortably without forgoing any necessities or being forced to go back to work during your golden years.   B.Y.O.C Brew your own cup of coffee (or tea) and bring it to work with you. Not only will you be reclaiming the $5 you spend daily on fancy coffee, but you also reclaim the 15 minutes you waste standing in line every morning waiting for it. After just one week, you could have an extra $25 in your wallet, which adds up to $100 more each month that you can contribute to your retirement account.   Lunch In If you bring your own lunch to work rather than dining out, you could save a considerable amount of money. Imagine that the average person who works five days each week spends $10 each day on lunch. That adds up to $50 each week, and ultimately, $200 per month!   Say No to Carryout Cooking dinner may not be easier than ordering carryout, but it certainly is cheaper. If you order out five nights each week and spend an average of $15 for each meal, you might be surprised to find that you are spending about $300 each month. If you’re spending that much for someone else to cook for you, imagine how much you could save by cooking for yourself. Cut out carryout and you could end up with an extra $300 per month to save toward retirement. There, we’ve found about $600 you can save without taking on an extra job! These changes may feel like big sacrifices now, but the payoff will come when you have the money you need to achieve your retirement goals. AC:1211_5311 Saving 2011-12-14T12:49:13+00:00 http://thedreambigsite.org/articles/my-pursuit-of-2000/ http://thedreambigsite.org/u/314/ An article on CNN Money.com tells us that most Americans can’t afford a $1,000 emergency expense. Two statistics from the article are noteworthy:   “A majority, or 64% of Americans don't have enough cash on hand to handle a $1,000 emergency expense, according to a survey by the National Foundation for Credit Counseling, or NFCC…” “Only 36% said they would tap their rainy day funds for an emergency. The rest of the 2,700 people polled said that they would have to go to other extremes to cover an unexpected expense, such as borrowing money or taking out a cash advance on a credit card.”   I am part of that 36 percent. This is a scary fact, and one that made me realize that I need to do something immediately. I’m going to embark on a journey, and I’d like to bring you along. My goal is to save $500 per month for 4 months until I have saved $2,000. To some, this may not seem like a big sum of money, but for me it’s a big deal.   I’m going to keep you updated on my progress, and let you know the ways I’m cutting back to save along the way. I imagine I will encounter some obstacles during the holidays, but I will stick with my plan (See step 1 in Five Steps to Saving) and make my dream a reality.   Come join me on this journey. How much can you save in 4 months?    While we believe the external website listed above is reputable, we neither endorse it nor can vouch for its complete accuracy. AC: 1211-5305 Saving 2011-12-08T15:21:30+00:00 http://thedreambigsite.org/articles/the-young-and-the-riskless/ http://thedreambigsite.org/u/290/ If you’re in your 20s or 30s, a couple decades from now you may well be reading articles similar to this one in the New York Times about the risks of experiencing poor or subpar investment returns in your late career years. Ideally, when you come across a quote like this one from William Bernstein, you’d smile with satisfaction:   “What the wise person does is save a large amount of money when they are young…And if they can do that, when they are older, they can cut back on their equity allocation. When you’ve won the game, you stop playing the game.”   This implies that you not only will have saved, but that you’ll have “invested” those savings in assets like stocks and bonds that have real growth potential.   But if you’re like many young people, taking such “risk” may be unsettling. The Wall Street Journal recently reported from surveys and interviews with financial advisors that many Gen X and Y investors are “...shying away from equities and are more concerned about protecting their principal than growing their money.”   Why? The two major stock market downturns since 2000, seeing their parents’ retirement accounts experience losses, and an uncertain economy are key factors.   If this discomfort with risk applies to you, try to mentally as well as physically segment your money between what you may need in the next few years — emergencies, a new car or house — and what will help you be financially independent late in life — your retirement money. For the latter, consider a diversified balanced fund that invests in a mix of different types of stocks and bonds; its lower volatility compared to separate individual stock and bond funds may help you stay the course. AC: 0811-5004 Featured, Investing 2011-12-06T14:13:15+00:00 http://thedreambigsite.org/articles/dont-wash-money-down-the-drain/ http://thedreambigsite.org/u/313/ What is one thing that makes you happy? Many people would say, “Money, of course!” But, what happens when that happiness starts to disappear? You may ask yourself, “Where did all of my money go?!” That question usually comes to mind once you realize that you’ve spent money on things you didn’t necessarily need, but really wanted.   It’s very easy to spend more than we should on things we want but don’t need. We don’t think about the effects of erratic spending at the time of purchase, but once guilt sets in, we quickly realize the error of our ways. Looking at my spending habits, I’ve concluded my biggest non-essential money drainers are: Eating out/grocery shopping (e.g.,fast food, restaurants, impulse buying, snacks, and buying brand name groceries). Technology/electronics (e.g., signing up for expensive cell phone plans; paying overage charges; purchasing music for iPods; and purchasing various forms of technological entertainment). Shopping (e.g., making impulse purchases and buying expensive name brand clothing). Hair/hair care products (e.g., regular trips to the hair salon or purchasing expensive hair care products). Gifts (e.g., spending more money than I should spend on gifts for family and friends). In spite of my bad spending habits, I’m trying to change my ways and have found a few easy ways to save money each month: Eating out/grocery shopping — Reduce the frequency of eating out by limiting yourself to once a week or twice a month. Also, look for coupons from your favorite restaurants or manufacturers to get a discount.   Technology/electronics — Consider purchasing refurbished items instead of new ones. Also, research cable, telephone and/or Internet service plans to find one that fits your actual needs. Eliminate extras on your cell phone plan. Shopping — Look for sales and bargains; shop at thrift stores, flea markets, and garage sales. Carry less cash to eliminate impulse buying. Hair/hair care products — Try making your own products instead of buying them. Style or cut your own hair, or have someone that you know do it for free. The goal is to cut back on salon visits. Gifts — Instead of buying, make one; many people appreciate a thoughtful homemade gift. What other things would you consider to be money drainers? What are some things you’ve done to save money? AC: 1111-5260 Saving 2011-11-29T13:20:58+00:00 http://thedreambigsite.org/articles/online-reviews-buyer-beware-/ http://thedreambigsite.org/u/312/ A common practice (or at least it should be) before making a purchase either online or in-store is to research the product. Reading the opinions of previous purchasers of the product you are considering should offer you some insight as to whether it is in fact what you are looking for, and if it will live up to your expectations. But what if the reviews you read turned out to be fraudulent? Would you even be able to tell?   With the holiday season quickly approaching and the convenience of online shopping, it’s common to search for the object of your intention only to find numerous websites where consumers rate the product you are considering.   According to an article on USA Today.com, experts say, “Websites and online product reviews are increasingly pretending to contain legitimate opinions about products but are often for-hire endorsements or promotional material.” This tells us that there is a chance that you could unknowingly run across a fraudulent review on the websites you look to for reviews.   In light of the misinformation that you could find, there are still credible ways to find out whether a product is worth buying or not. For starters, word of mouth remains one of the most effective marketing tools for good reason: when people like something, they usually can’t wait to tell others. So don’t be afraid to ask a friend or neighbor how that new treadmill he bought five months ago is holding up, or if the graphics on his daughter’s new video game are really as good as reviews say. Chances are you’ll get the truth.   Also, there are ratings organizations such as ConsumerReports.org, that provide objective reviews. There might be a charge to view ratings on specific products or services. But if the price is right for you, then a resource like this may be worth considering before making your purchase.     The key takeaway is to be discerning when you read online reviews; if it looks too good to be true, it probably is.   While we believe the external websites listed above are reputable, we neither endorse them nor can vouch for their complete accuracy. AC: 1111-5267 Saving 2011-11-22T18:18:42+00:00 http://thedreambigsite.org/articles/stay-free-and-clear-of-credit-debt-this-holiday-season/ http://thedreambigsite.org/u/310/ Buying presents for loved ones is the perfect excuse for charging large amounts on your credit cards, right? Wrong! When it comes to using credit for holiday purchases, it’s best to assess what you can realistically afford to spend before you start shopping.   Here are some alternative ways to give presents to your loved ones and minimize the risk that you will find yourself in a rut when your credit card statement comes.  Use paper, not plastic. Make a list (and check it twice) of everyone you plan to buy presents for and what you can reasonably afford to spend on each person. Withdraw only that amount of cash and stick to your list while shopping. Generally, it’s easier to overspend when using credit cards because you don’t physically see the money coming out of your account. Using cash vs. credit might require some extra thought and planning on your part, but you’ll most likely appreciate having paid for your gifts up front.  Make a donation in the name of your family or friends. Small children may not appreciate this kind gesture if they normally receive presents from you, but some adults will understand and support your decision to give a gift to someone who may need it more than they do. Make gifts at home. If you’re creative, the arts and crafts store is a great place to go for the tools to make nice and inexpensive gifts for everyone on your list. The best part of it all: The gifts come straight from your heart. Give your time. Do you have a relative or friend who could use an extra hand with the kids or household chores? If so, offer to help them out — you’ll be giving a gift that money can’t buy. Instead of making excuses and incurring expenses you cannot afford, decide to cut your spending and celebrate the holidays with less debt. AC: 1111-5267 Credit 2011-11-17T14:17:55+00:00 http://thedreambigsite.org/articles/borrowing-at-your-own-risk/ http://thedreambigsite.org/u/308/ A tough economy forces people to make difficult choices. When money is tight, some people might feel forced to choose between food and medicine. Another tough choice is saving for retirement or borrowing from your retirement account to pay for today’s necessities.    With the 2010 Census Bureau reporting that the nation’s poverty rate had increased for the third consecutive year to 15.1 percent (that’s 46.2 million people!), it seems more common that people are being forced to make these difficult choices every day.   If you are faced with choosing between taking a loan from your 401 or 457 retirement account or falling behind financially, there are some important things to consider.  You are borrowing your money at a cost. Unlike borrowing money from a financial institution, you are borrowing from yourself and paying yourself back. The principal and interest of each loan payment is applied directly to your retirement account. This money will purchase more shares in your investments and you will slowly begin to rebuild the savings you withdrew. The cautionary word here is “slowly.” The frequency of your payments is determined by your retirement plan features, as well as the type of payment you’ll make — either automatic withdrawals from your bank account or deductions from your paycheck. Unfortunately, the money you borrow is not invested and will not benefit from compounding — the ability of your invested assets to generate earnings on top of prior earnings. And there are tax consequences: the loan money may be taxed twice and penalties may be charged if the loan is not paid back as agreed. Compounding allows your investments to grow over time. As your money remains invested in your retirement account, each additional contribution builds on the money you’ve already saved. Over the long term, the value of a well-diversified investment portfolio has the potential to grow. An article written by Stephen Moore, director of fiscal policy studies at the Cato Institute, referenced a study conducted by Tom Kelly, director of the Savers and Investors League. The study found that regardless of "the mutual fund's volatility over time, a fund's total return from any start year (i.e., 1930, 1950, 1970, etc.) to 1997, was virtually always 11% per annum."     If you become unemployed, you may be required to pay the remaining balance of the loan in one lump sum. This could be an added financial burden especially if your unemployment was unexpected. If you do not pay the loan back, the IRS considers the withdrawal of money for your loan a taxable event. At the end of the year you will receive a 1099R form deeming the distribution an unqualified withdrawal from your account. If the loan was taken from your 401 plan, you may also be penalized 10 percent of the amount of the distribution. A loan from your retirement account shouldn’t be your first option, but if it is your only option: Be sure you are able to pay back the loan on time. Only take out the amount you absolutely need. Be sure to read and fully understand the terms of your loan. If you change your mind about using a loan from your retirement account, you have a period of time after receiving the loan payment to rescind the loan and return the money to your account. Most retirement plans will not allow you to take out another loan if you default on a prior loan. So, if your financial situation does not improve, a new loan may not be an option. Instead, consider ways to build an emergency fund (check out “The Emergency Fund: The Foundation of a Savings Portfolio” article on this site). AC: 1111-5254 Loans 2011-11-09T17:12:05+00:00 http://thedreambigsite.org/articles/5-steps-to-saving-/ http://thedreambigsite.org/u/307/ If you haven’t read “A Young Investor’s Guide to Saving,” you should do so before reading the rest of this article. It shows you how important it is to start saving early and how doing so may lead to becoming a millionaire.   Now that you’ve seen the potential, here are five steps to help you get started and build your savings: Set a savings goal and develop a plan to achieve it. Remember this is your life. Make your plan as detailed and realistic as possible. Once you have a plan, stick to it and commit to contributing the amounts you’ve set. Know what type of retirement savings plan your organization offers. Your employer may offer 457, 401, IRA or several other retirement savings options. Know whether and how much money your employer might match (look at it as free money to supplement your savings and take advantage of it). Stay informed about all aspects of the plan. Start investing now. Time is an important part of investing. It is the biggest difference between $0 and $1 million dollars in your account. So don’t put it off — start saving today! Beware of withdrawals and loans. Don’t take early withdrawals or loans if you can help it. Remember you want your money to grow. Early withdrawals or loans can derail your goal. Sit back, relax and monitor your plan. Make periodic adjustments to your plan as you get older and as your personal circumstances change. Always remember that starting early plays a big part in building the retirement security you want in the future. AC: 0811-5004 Saving 2011-10-27T21:15:53+00:00 http://thedreambigsite.org/articles/a-young-investors-guide-to-saving/ http://thedreambigsite.org/u/305/ You recently started your career and you know you want to be successful. Maybe you dream of becoming a millionaire. Most 20-somethings have long-term goals like this, but in the short term, we want a cool car, a nice apartment, money to pay off our student loans, and the financial freedom to travel around the world. Let’s face it: retiring in 35 to 40 years isn’t on our radar. We know it’s important to save but we can barely afford our current expenses (e.g., college loans, rent). We feel like we can only contribute small amounts to our retirement plans until later in life when we settle down and can “afford” to contribute more. But when we wait, we suddenly realize we have a mortgage, two car payments, and kids (who expect to have the lifestyle we had growing up), and saving for retirement gets tossed to the back burner — again. Because pension plans and Social Security are no longer a given, building retirement security is something we really have to pursue early in our careers. Making contributions to your retirement savings account when you first start working is critical. Maybe you can start small with a savings goal of $2, 500 or $5,000 per year. If you’re optimistic and ambitious, you might even set the bar at $10,000. The key is to start. The money you invest today can be worth much more than the money you invest when you’re 40 or 50 years old. How? The chart below shows an example of how starting annual contributions at age 25 in a 457 or 401(k) plan, can grow to more than $2 million by the age of 65, if you contribute $10,000 each year and earn an average annual return of 7%. The savings, of course, is much lower if you contribute $5,000 or $2,500 annually. However, if either of these amounts is what you can afford to save, then it’s certainly worth contributing that amount. Waiting until age 40 to start saving $10,000 annually at the same 7% average annual return would yield a potential $650,000 in savings, nearly 68% less than if you had started saving at age 25. Of course, these examples are hypothetical — they do not guarantee that you will achieve the stated rate of return (depending on your circumstances) or that values of the underlying investments won’t fluctuate. You might wonder how one can afford to make an annual contribution of $10,000. It may seem impossible. But, maybe not. Use the calculator below to see how. It adjusts your annual contributions to a number you are comfortable investing, and it can help you develop a customized plan based on your retirement savings goals. Your browser does not support iframes. This calculator is distributed by KJE Computer Solutions, LLC. It is being made available as a self-help tool for independent use and is not intended to provide investment advice. There is no guarantee to the applicability or accuracy of this calculator in regards to an individual’s circumstances. All examples are hypothetical and are for illustrative purposes. You are encouraged to seek personalized advice from qualified professionals regarding all personal finance issues. AC: 0811-5004 Featured, Saving 2011-10-19T16:53:52+00:00