Retirement Calculators - Before And After Retirement
By John V. W. Howe
Calculating Our Finances Before Retirement

It seems that most of the calculators on the Internet are designed by investment and securities firms whose goal is to make you invest with them and make them money. These calculators do not necessarily give you the true picture of your finances.

If you plan to work after and the calculator does not allow for income from a job, your financial projections will be off by a mile. Income from a job can have a very positive impact on your finances.

While researching calculators on the Internet, we found three (there may be more) that include income from work after retirement. These are listed at the end of the article so keep reading.

Even these calculators have a weakness since they ask for the amount of annual income from a job after retirement, but do not ask for the age when that income will stop. They assume the income will continue until death which is not accurate. We are all living longer, but I doubt if many of us will still have a job at 90.

Calculating Our Finances After Retirement

Once we retire, the variables involved in calculating finances are greatly reduced. Unless Aunt Bess leaves you an unexpected inheritance in her will, you know the amount of your savings that has to last your lifetime.
Unless inflation runs away during our retirement, the major variables we have to consider are how much we budget to spend each year, the amount we make from our job, and how long we choose to work at that job.
Income from a job has a very positive impact on your finances. As a part of your planning, have you thought about continuing to work after retirement?
Let’s do a fast calculation and see the impact of an after job on your finances. Let’s calculate the amount of investment that you need to generate a monthly income of $1,000 per month.
To do this we need to make a few assumptions. Assume the income generation rate of your investments is five percent (5%). Let’s assume that we are not going to take any principle from your investments to do this. This will leave the principle intact for use later after you have stopped working in your job.
The calculation is how much principle is needed to generate $12,000 per year ($1,000 per month). The formula is principle divided

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