The Lottery Won’t Save You, But Smart Money Management Can

create your monthly budgetWorrying about money is a major stressor. Financial problems can wreak havoc on your physical and emotional health, your relationships, and virtually every aspect of your life. It is little wonder, then, that many folks who are struggling with their finances nurture dreams of a miraculous save, a deus ex machina such as a huge lottery or sweepstakes win. Accordingly many people spend more money than they should on lottery tickets and scratch-off games, with low-income people being among the most vulnerable to the (mostly) false hope that money will fall into their hands if they spend half of their paycheck on the next Mega-Millions game.

Don’t let your big dreams blind you to reality

Don’t misunderstand us. There’s nothing wrong with buying an occasional lottery ticket, or even daydreaming about what you would do if you won, but don’t pin all of your hopes and dreams on a big win. If you are truly struggling financially you’re far better off looking for more realistic solutions to your problems.

Setting and living within a budget that covers your expenses and allows you to have a decent quality of life, while still managing to contribute to your savings on a regular basis, is essential. While this can be a lot more difficult to do than to say, it is doable for most people.

One area where too many people get off that track is in accumulating more debt than they can handle on a regular basis. It is essential that you avoid debt unless it is necessary or will actually improve your financial condition. If you decide that you do need to take on a debt, you need to really know what that debt is going to cost you, and to shop around for the best source of credit.

Comparison sites for example provide you with a side-by-side comparison of the terms and costs of different lenders’ offerings on many types of loans The site also has tools such as financial calculators, and advice on how to best manage your household finances, so you don’t find yourself struggling and wishing for a windfall.

Most people know at some level that they could be smarter about managing their money. Nevertheless the siren song of the lotto calls to millions of people.

A tax on the poor?

Unfortunately, some of the most financially vulnerable, who can least afford to spend money for things that have virtually no chance of benefitting them, are the most likely to heed that call, to their detriment. It is not too difficult to understand the appeal, especially when someone who can barely afford the basic necessities has the promise of a $1 billion-plus jackpot dangled before them, such as has been the case with the American Powerball lottery. Visions of acquiring previously unimaginable wealth can be profoundly seductive when you barely have enough money to buy groceries for the week. And the tantalizing suggestion that somebody is going to win, so I have as good a chance as anyone, makes it exceedingly easy to part with a couple of dollars for a ticket, or even to cut back a bit on the groceries to buy more tickets, thus improving your chances.

What is not emphasized in the commercials is the fact that the jackpot is bigger because more people are buying tickets, diminishing your virtually nonexistent likelihood of winning even further. Add to that the fact that late in 2015, the table of available Powerball numbers from which to choose the winning five grew from 59 to 69, further reducing dramatically the chances that anyone will win. The pot gets bigger, and people’s fantasies are whetted to the point where they end up spending more of the money they really need for other things. It’s no wonder that some financial experts consider the Powerball lottery a state-sanctioned swindle. Other countries, including the UK, have similar games in place for one reason – they are a tremendous source of fast and easy revenue.

In 2009, the UK newspaper the Telegraph reported about a study by a think tank that showed people on low incomes spent disproportionate amounts on money on the National Lottery, adding credence to widespread claims that it is a tax on the poor. And the same phenomena can be seen in other countries that sponsor lotteries and sweepstakes.

Your chances of winning are slim, and it won’t solve all of your problems anyway

Aside from the fact that you’re more likely to be hit by a comet or be killed in a wreck on the drive to the store to buy your tickets, actually winning the lottery has proved to be as much a curse as a blessing for too many people. A 2010 study conducted by the National Endowment for Financial Education (NEFE) found that even if you win the big prize, there is a 70% likelihood that you’ll be broke again within five years. Those money problems you had before you won? They will likely be there, only greatly multiplied, because most people adapt quickly to the dramatic change in scale, only to find themselves with a crushing burden of debt and tax payments after the cash runs out. And we won’t even get into the pressure from friends, acquaintances, and long-lost relatives who seem to magically appear, hands out, when they discover you’ve come into a pot of gold.

The bottom line is that the lottery won’t save you, but wise money management can save you from a world of stress, and money management is something that anyone can learn. Besides, if you learn to be smart about the money you have now, you’ll be far more likely to be smart if you ever do come into a fortune.

2018 Roth IRA Contribution Limits

2018 Roth IRA Contribution Limits

We all know that we should be saving for retirement.  Whether you have a 401k, a pension, or an IRA, retirement accounts give individuals great tax breaks to help them prepare for their golden years.  It is often reported that people misjudge how much they will need in retirement.  The rule of thumb for a long time has been you need your retirement income to supplement 80% of your income when you were working; however, this number is different for everyone based on a number of factors.  One thing is certain.  Maxing out your retirement accounts never hurts.  For 2017, the IRA contribution limits stayed the same as they were in 2016.  You could contribute up to $5,500 towards your IRA, and if you were 50 or older you can contribute an additional $1,000 bringing your total yearly contribution limit to $6,500.  The 2018 Roth IRA contribution limits won’t be released until October of this year, but we can speculate what they might be.

Each year, the Internal Revenue Service (IRS) sets the income and contribution limits for IRA’s.  The last year that the IRS raise the contribution limit was for the tax year of 2013.  The contribution amounts for traditional and Roth IRA’s are the same each year.  They are evaluated and raised based on inflation.  The IRS will raise contribution limits in increments of $500.  This means that the next time they are raised, people under the age of 50 will be able to contribute a maximum of $6,000 a year to their IRA, while people over the age of 50 will be able to most likely contribute $7,000 a year.  In order for this raise in contribution limits to take place, inflation would need to be around 9% over a period of time for this to occur.

9% of $5,500 = $495

This would be near the $500 increment level the IRS would like to see to raise the contribution limits.

Since the last time the IRS raised contribution limits in 2013, inflation has risen by about 6.5% based on data tables.  This means that another 2.5% increase in inflation would be needed for the IRS to raise the contribution limits for traditional and Roth IRA’s.  With all of this being said, the most likely scenario is that 2018 Roth IRA contribution limits will remain unchanged.  A more likely scenario would be a raise in the contribution limits for 2019.

Despite the fact that the 2018 Roth IRA contribution limits won’t change, the IRS will still probably change some limits.  The limit they will change, and almost always do, is the income limits associated with eligibility for participation in IRA’s.  For 2017, the IRS raised the income phase-out limit to $118,000 for single earners and $186,000 for married, joint filling earners, raises of $1,000 and $2,000 respectively.

There are still many months to wait until the IRS reveals their 2018 Roth IRA contribution limits.  An increase in the limit would allow individuals to save an additional $500 a year in a tax-advantaged account.  Although an increase is doubtful, we can still remain hopeful.

Budget Smart, Invest Wise

Allegiant Air Review

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The official start to summer begins on June 21st, but the warm weather and sunshine makes it feel like we are already in it.  Summer means kids out of school, pleasant weather and vacations.  Vacationing during the summer months has become a staple of many families across the U.S.  Whether you are travelling to visit family, going to the beach, or trekking through a national park, summer presents many individuals the opportunity to get out and about.  Nowadays, people are electing to fly more than ever.  Airlines have become more competitive with their fares in an effort to boost travel by air.  One of these airlines who is known for having great deals on flights is Allegiant Air.

Allegiant Air, or just Allegiant as it is more commonly known, is a budget airline based out of Las Vegas, NV.  Founded in the late 90’s as WestJet Express, Allegiant has rapidly gained popularity among passengers looking for cheap fares throughout the U.S.  With nearly 100 aircraft serving approximately 150 destinations, Allegiant has expanded its reach from coast to coast.  In this Allegiant Air review, I will discuss the positives and negatives of the airline along with some pertinent information you need to know before you book your summertime travel.

Allegiant Air Review: Positives

Probably the biggest positive in terms of Allegiant is the price of their fares.  I know of people who have booked round trip tickets for less than $100 on many occasions.  The earlier you plan and book your trip, the better the price.  Like most flights these days, Allegiant flights aren’t always booked to capacity.  This means that if there is an open seat you would feel more comfortable in you may go ahead and switch.  They also tend to fly into smaller airports.  The benefit of this is you have less crowds and TSA lines to deal with, and you can sometimes find flights into airports that the likes of Delta and American won’t touch.  Finally, their smartphone app and website make it easy to book and manage your flights just like the big airlines, so you don’t have to sacrifice convenience.

Image result for Allegiant route map
Allegiant Air Route Map

Allegiant Air Review: Negatives

Of course there are also negatives to flying Allegiant Air.  First and foremost, when you book your flight, you need to stick with it.  Changing your flight or cancelling it results in lost money for you the customer.  Secondly, their customer service isn’t the greatest.  I’ve found myself calling before about a simple question only to find myself waiting for 45 minutes on the phone with no answer.  Lastly, as is the case with many budget airlines, they charge for the extras.  This means you have to pay extra for a carry-on or checked bag.  It also means that you don’t get any free refreshments.  Drinks, including soft drinks and snacks, are extra.

Conclusion:

If you are a planner and enjoy planning trips months in advance, Allegiant is definitely an airline to look at.  Even with paying for an extra bag or two, they are often times still cheaper than larger airlines.  The planes offer standard comfort, and  Allegiant oftentimes has direct flights that few other airlines can offer to varying destinations.

Financial Challenges in 2017

create your monthly budget2017 and beyond seems to be a difficult time for businesses. With the global financial situation affected by Brexit, by a divisive and embattled new presidency in the US and an upcoming General Election in the UK, it’s difficult to plan beyond the immediate weeks or months.

For reassurance and reflection, here are some of the bigger challenging issues facing businesses at the moment, and some tips to help.

Financial Management

With changes in government, both at home and more broadly, we can expect new financial regulations to come into force. Donald Trump has announced various high level reforms he intends to make to businesses, and at home in the UK, there are likely to be many new rules brought in to cushion or capitalise on our withdrawal from the EU and the Single Market.

At times like this, large firms need a good CFO, and smaller businesses would benefit from an experienced Financial Consultant. As Jon Burr puts it, “the convergence of ecosystems within financial services across banking, capital markets, asset management, insurance and professional services, all in an environment of increased technological innovation and regulation, is creating a new paradigm”.

This is a lot for a single individual to keep track of, and CFOs in this new ecosystem need to be exceptional individuals. It’s worth consulting a specialist recruiter like Savannah Search to make sure you have the best person for the job in your business.

Technology and Change

The pace of change in technology is only accelerating. Knowing when to jump aboard a new trend, and when to watch carefully is one of the best skills you can cultivate.

A good CIO can help you here, providing updates and expert opinion to aid your judgment. You can also bring a common sense balance check to suggested innovations from your tech experts. Remember, just because something is new doesn’t mean it will automatically be worth doing.

Always remember to check if you are filling a real gap in the market and remember the example of the feature rich, ruinously expensive juicer, which nearly wiped out the founder’s business when it was found the bespoke fruit packs could be squeezed by hand, without investing in the $400 machine. Don’t be a Juicero.

As long as you apply your practised business instincts to each new proposition, you can avoid sinking too much investment into an idea which may never return it.

Renasant Bank Review

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Many of us are familiar with the national banks that stretch across the U.S.  These include Bank of America, Wells Fargo, Chase and others.  While often times we assume banking with the big banks is the best, that is sometimes not the case.

During the recent financial recession, a lot of pressure came down on smaller, local and regional banks.  No matter what bank it was, they all saw their stock price take a nose dive.  Renasant Bank began over 100 years ago in Mississippi.  Throughout it’s century long existence, the bank has continued to expand over the years.  Today, they have more than 175 locations spanning across the Southeast.  States where they operate include: Mississippi, Alabama, Tennessee, Georgia and Florida.  Renasant Bank is a full-service bank that offers everything from checking and savings accounts to loans and wealth management services.  This Renasant Bank review illustrates many of the benefits one can receive from a smaller, regional bank versus a national bank.  Below are the three biggest benefits received from this regional bank.

Benefit 1: Free Mobile Deposit: Today the popularity of smartphones have made mobile banking a must.  Nearly every bank has an app where you can access your banking services.  The development of the smartphone led to the creation of mobile deposit.  When mobile deposits were first introduced, many banks charged their customers for this service and some still do.  However with Renasant Bank, mobile deposit is completely free and deposits made before 6:00 PM can usually be expected to post to your account the next day.  This has become the most popular banking service of the modern day and has led to branch closings which ultimately leads to lower costs for banks around the country.

Benefit 2: ATM Fees Covered: We are living in a country where cash becomes less of a necessity each and every day, but there are still many places that prefer the green money to the plastic.  The main reason for this would be that businesses don’t have to worry about paying the credit card processing fees.  With the existence of all-cash places, the need for it is still out there.  While you can often times withdraw money from a grocery store or your bank’s branch for free, it isn’t always the most convenient.  Because of a lack of regional and national presence, many smaller banks reimburse you for such fees and Renasant Bank is no different.  It is always reassuring to know that when are in a crunch and need cash ASAP that you won’t be subjected to the sometimes $10 fee.

Benefit 3: More Personal Service: Some individuals are inclined to support the communities they live in.  They feel a personal obligation to help out their local economy.  This goes for grocery stores, small business and also banks.  When you bank with a smaller, more regional bank, you are more likely to build a personal connection with the people in that branch.  Thus, often times they will work with you on various things such as loans that bigger banks sometimes won’t.

Banking is an essential part of every day life.  Maybe you are younger and looking to open a bank account.  Maybe you feel a lack of trust or professionalism with your current bank.  Looking into smaller banks like Renasant can be a great option for many.

 

 

Managing Your Finances When Disabled

Just about every stage of life requires an understanding of your financial situation; when you go to college, get married, decide to buy a home, choose to have children, when you choose to retire, et cetera. However, most of us don’t take into consideration the possibility of becoming disabled and how this will play a major role in our finances. Let’s learn more about managing our finances while dealing with a disability!

Social Security Disability Insurance

When people become disabled, it’s recommended they check and see what their SSDI eligibility is going forward. Once you understand what your benefits are, you will need to account for that in your budget. There is also a trick when it comes to SSDI benefits and working. Most people assume you cannot work if you are receiving benefits. This isn’t quite true! You can test your work abilities but there are very specific guidelines to how much you can make without losing benefits. This is crucial when many disabled persons don’t receive enough to care for themselves and still need some sort of income to help. Do not assume you can make any specific amount. Speak with your disability lawyer to find out what the rules are around making any extra income while disabled!

Look at Your Budget

If you already have a budget then you need to review it. If you don’t have a budget, you must create one. It doesn’t matter how much money you have coming in from Social Security, a budget will help make everything easier for you to manage. It’s more important to budget when you feel as if you have little to nothing. Disabilities often create extra expenses rather than lessen them. If you don’t take the time to budget, you can find yourself struggling quickly.

Of course, you will be tracking your spending over your standard expenses. Rent/mortgage, utilities, transportation, and food are the usual main expenses that should be considered. You will also need to look at clothing, healthcare (insurance, co-pays, meds, medical aids), home maintenance, and entertainment. Entertainment is important because although you may be disabled, spending a little time enjoying an outing is vital for your mental health. If you never try to do anything fun, it can wear you down mentally and contribute to further health issues.

Scale Back

Once you see what your expenses are and what you are bringing in, don’t panic! It’s not uncommon to see your expenses higher than your disability income. Take a deep breath and look to see where you can cut back. Don’t start with your heavy hitters, such as healthcare and food. You need those to take care of yourself. Instead, start with your rent and utilities. Can you move into a smaller home or apartment that can help you save money? Can you eliminate pay-television and stream movies and television through the internet? If you have a mobile phone, can you get rid of your landline (or can you rid the mobile and keep the landline?) If you own your home, don’t rush to sell it just yet. Check with your lawyer first to be sure it will not harm your benefits.

Dip into Retirement

Depending on where you are in life and whether you were denied benefits, you may have to dip into retirement savings to maintain your life while disabled. This should only be a last resort and if you have enough saved to take care of yourself! If you are under 62, this is probably not the way you want to go. However, if you are 62 you can “retire” and apply for Social Security Insurance Benefits (not disability benefits). However, it will be greatly reduced! You can then dip into your own IRA/SAP/401k to supplement your needs.

If you find yourself still struggling with managing your finances, look to family and friends who will help you make sure bills are paid timely and that you are well within your means for living. It can be a difficult discussion to have but well worth it in the long run!

 

Is Vehicle Insurance Part of Your Monthly Budget?

How to Save a Quick $250 in Your Yearly BudgetRegardless of the brand or model of the vehicle you drive, there is one thing that will always be required. If you are going to drive, you are going to need insurance on the vehicle. While many people believe this is something they can get around, it simply isn’t worth the risk.

Driving without insurance puts you in great danger. No, you’re not exactly at a higher risk to be involved in an accident. But, you could be in danger of many severe consequences. You could lose your license, you could be setting yourself up for financial disaster, and you could find yourself sitting in a jail cell.

Money was just too tight

The night of my accident, my wife and I had been in the middle of pretty difficult times. She had to give up her job a few months prior due to the birth of our child. Money was tight and things were difficult at the time, but the addition to our family made the sacrifices we endured well worth it. Except for one.

When we first felt the pressure from the loss of her income, one of our first moves was to compare auto insurance rates of different companies. We found a company that offered a significant difference in the monthly premium we were already paying, but we lacked the money that was needed to begin the new policy.

We new driving without insurance was illegal, but we found comfort in the fact that we were both great drivers. Neither of us had ever received a ticket, let alone be involved in an accident. We decided that insurance was something we could go without, just until we were able to get back on our feet.

Even the report indicates that the accident wasn’t my fault. However, because our car was uninsured, I was given the blame and held legally responsible. The small area we lived in was making a push at the time against uninsured motorist, and I was the perfect example of what could happen.

I was in shock as the officer placed handcuffs around my wrist and placed me in the back seat of his car. I was taken to jail where I would wait for my court appearance the following afternoon. I would like to say that was the worst that happened. That just simply isn’t the case.

Facing the consequences

Once I was in front of the judge, matters only got worse. Although it wasn’t my fault, damage had been done to the other driver’s truck. Because I was now legally responsible and didn’t have insurance, it would be up to me to pay for the damage. Out of my own wallet.

Because of the fact that I was in jail waiting to go to court, I was unable to be at work that morning. Hearing about my new need for money wasn’t enough to persuade my employer to save my position. The company has a strict no absence policy and the fact that I missed work due to being in jail didn’t help. My employment had been terminated.

You may believe that you can not afford to insure your vehicle because of your circumstances. Trust me when I say, you can’t afford to get caught driving without it.

Nick Murray: Simple Wealth, Inevitable Wealth

I got my first “real” job at the age of 23 and could not wait to begin investing.  I knew that if I was going to achieve wealth I had to start young and with my parent’s financial advisor.  Turned out I was wrong.  I only had thousands of dollars to invest, and my FA had clients who had hundreds of thousands, even millions.  I paid fees to the FA, still to this day I’m not sure what they were, that were at least 1%.  I took the advice of my advisor believing they were the “expert”.  Eventually I learned they weren’t.

A friend of mine introduced me to a book that forever changed my life and investment philosophy.  That book was Simple Wealth, Inevitable Wealth, Revised Edition.  In the past four years since being introduced to this book, I have read it many times, bought copies for friends and family, and seen my net worth increase dramatically.  I have the confidence to say that this book alone will allow me to achieve millionaire status before I reach the age of 40.  I am also confident in the fact that this book will help me achieve wealth that I never once dreamed I would have been able to.  I will dive into the three most important aspects I gathered from the book and how they will benefit my wealth creation.

1. INVEST IN STOCKS, NOT BONDS

Most advisors will tell you that you need an appropriate mix of stocks and bonds, especially the older you get.  Why do they tell you this?  Bonds have a lower volatility than stocks, but that lower volatility also means lower returns.  Nick Murray states in his book, “You should be an owner not a loaner”.  A good FA will allow you not to freak out and sell when the market turns south.  By owning stocks and not bonds, you ensure the highest possible return on your portfolio.  After all, the S&P 500 has returned an average of over 10% per year for over the past century.

2. GET A GOOD FINANCIAL ADVISOR, OR CONVINCE YOURSELF NOT TO SELL

Nick’s reasoning for a financial advisor is that he or she will make sure you won’t sell equities when times get rough.  He uses the following example in his book:

“Warren Buffet’s net worth declined over six billion dollars between July 17 and August 31, 1998.  His net worth decreased by six billion in 45 days, but how much did he lose?  The answer is zero.”

Times got tough during those 45 days for equities, but since Warren didn’t sell he didn’t lose.  The natural tendency of people is to sell when the market heads lower and buy when the market goes up.  If you can wrap your head around this philosophy that markets will go down and up, but keep in mind the long-term investing horizon, I say there is no reason for an FA.

3. INVEST CONSTANTLY AND FOR THE LONG TERM

Stocks may not return 10% in the short run, but the best predictor of the future is the past, and over the long-run they should return about 10%.  Invest with a long-term horizon and invest on a constant basis.  Investing on a constant basis means every week, paycheck or month, add to your investments and let compound interest work its magic.

Finally if you get a chance I definetly reccomend that you pick up a copy of Murray’s book. Its available on Amazon for around $20 bucks. Thats a lot, but its definetly worth the investment. Click here to get it.

Budget Smart, Invest Wise

Kyle Schwarber’s Net Worth

If you are a Chicago Cubs fan, and even if you are not, then you know that last season the Cubs broke a 108-year curse to become World Series Champs. It took the Cubs 7 games to knock off the Cleveland Indians, and the final game came down to extra innings. One of the biggest players in game 7 for the Cubs was their DH, Kyle Schwarber. Kyle went 3 for 5 in the game, but more importantly hit .412 during the postseason for the Cubs.

So, since Schwarber is so famous, you may be wondering, what is Kyle Schwarber’s net worth?

Answer: At least $1.2 million.

At 24 years of Age, Schwarber is one of the youngest players on the team’s roster. He was drafted in 2014 as the #4 overall pick out of Indiana University. At the current moment, Kyle Schwarber’s net worth sits at $1.2 million. Although this might see very low for a baseball player from a championship team, he is bound to increase it dramatically in the near future.

Kyle Schwarber’s Net Worth

In 2014 when Kyle was drafted, he received a signing bonus that was worth $3.125 million. As is the case with most baseball draftees, this high signing bonus is all the money many of them see for quite a while as they are forced to work their way through the minors. Kyle came onto the scenes for the Cubs during the 2015 season. That year he made just over $230k in salary while batting .246 with 16 home runs and 43 RBI’s. The following year, 2016, Kyle was finally a fully active member of the Cubs roster; however, injuries plagued him throughout the year until he was able to return during the postseason. Despite his injury, he still made over half a million dollars during the season. This current season Schwarber is scheduled to make a salary of $565k.

The majority of Kyle Schwarber’s net worth is made up through his current baseball earnings and mostly of his signing bonus from 2014. After this baseball season, Kyle will be able to demand a hefty salary considering his play doesn’t falter. He is a regular starter for the Cubs this season out in left field. He has yet to make any errors thus far, but his hitting isn’t as great as it had been. At the time of this writing, Kyle is hitting less than .200, but he has belted 5 home runs. If he is able to improve his hitting and also lessen his strikeouts, he should have no issue inking a big contract next year.

On a personal note, Kyle is one of four kids. He has three sisters and a father who is a retired police chief. He was born on March 5, 1993 in Middletown, Ohio. He spent his years growing up in Middletown and attended Middletown High School where he played baseball. He then went on to the University of Indiana and was selected by the Cubs in 2014.

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FIRECalc Review

20 years ago, if you were interested in planning your retirement you had to sit down with a financial professional. Back in the 90’s and early 2000’s, meeting with someone with such financial experience was commonplace and expected. Fast forward to today and now people planning for retirement have a plethora of options to choose from. You can sit at your desk and pick stocks, you can set up an online investment profile, you can open a retirement account in as little as five minutes! With the ease of picking a retirement plan simplified, you can also simplify the math through several apps and online calculators. This FIRECalc review will show you that you, the investor, now have access to almost all of the tools that were once reserved for professional money managers.

What is FIRECalc?

FIRECalc is a new type of retirement calculator that factors in historical volatility into one’s retirement projection. Many used to think of retirement projections as the following: I have a $1,000,000 portfolio which I draw 4% from on an annualized basis, therefore I have $40,000 I am withdrawing. Unfortunately, retirement projections like this don’t always pan out. Think of the most recent financial disaster where many portfolios were slashed in half. What FIRECalc does is allow you to see all of the possible outcomes of your portfolio, whether it’s a market rally or another collapse.

The Benefits of FIRECalc:

FIRECalc can let you see a projected path of possibilities for retirement. The picture below uses the following example: Bob has a portfolio balance of $1,000,000. He needs to withdraw $50,000 a year for 30 years in retirement. The lines below indicate the vast array of possibilities that his money will last through all 30 years. With the red line signifying “Zero” you can see that the majority of lines end above. This means that based on historical factors, Bob more than likely will have enough funds to cover his spending requirement in his retired years.

What Else Can FIRECalc Do?

The premise that FIRECalc was built on was in dealing with historical market averages. FIRECalc uses this basis and expands it to many other calculator offerings. Around a third of all Americans rely on social security as their main source of income in retirement. Will your social security payments be enough for your retirement? FIRECalc will let you know what your chances of success are. Other calculators they have include ones for people who are looking to set up a future retirement, various spending models, along with a portfolio allocation model.

Conclusion:

I hope this FIRECalc review shows you the many benefits the site can offer. While it is not entirely user friendly (it looks very simple and plain), it does provide you with something all other retirement calculators lack. Most retirement calculators assume a specific return every year during the duration of your investment horizon. FIRECalc is different in that it presents you all of the possibilities. Markets can go up by 20% in a year, and they can also go down over 30%. There are many fluctuations to take into account and that is exactly what FIRECalc does.