Income Planning: Calculate How Much You’ll Have by Retirement


Troy Sharpe: I’m going to show you how to use one of the calculators on our website to help you determine how much you’ll have at your target retirement date.

Troy Sharpe: Hi, I’m Troy Sharpe, CEO of Oak Harvest Financial Group and a certified financial planner professional. This calculator is also found on our Knowledge Center.

If you come here under Calculators, we’re going to look at this Retirement Nest Egg Calculator. Ultimately, what we’re trying to figure out is the first gray box down here, how much will be available at retirement based on your current age, when you want to retire, and your current retirement savings.

Now, I want you to add all the savings up even if some is in the 401(k), and some is in an investment account or savings, just put one lump sum number in there for how much in total you have saved. Don’t include the value of your home.

Top view corporate man using calculator

This is simply liquid net worth. The monthly amount that you can invest or you plan on investing moving forward and then the average annual interest rate you want to look at. We want to be more conservative with these interest rates.
From there, you just come down here and you hit the Calculate button, and we’ll see, if you’re 28, want to retire at 62, you have $16,000, saving $750 a month at 5.5% interest, you will get to a little more than $1 million, $1.062 million, over that period.

What I want you to do here is play around with different interest rates, play around with different monthly savings amounts and get an idea of the power of compound interest over time. We call this the time value of money.

If we see here, we’re only putting in $750 a month, but we’ve earned out of that million, $731,000 of that is interest and that’s just at 5%. Play around with the numbers, and put your own information in there. It’s completely confidential, we don’t see what you put in, we don’t ask for your information. This is simply to help you stay more connected to your money and help you make better planning decisions.