Retirement Planner
Do you know what it takes to work towards a secure retirement? Use this
calculator to help you create your retirement plan. View your retirement
savings balance and your withdrawals for each year until the end of your
retirement. Social security is calculated on a sliding scale based on
your income. Including a non-working spouse in your plan increases your
social security benefits up to, but not over, the maximum.
Information and interactive calculators
are made available to you as self-help tools for your personal
use and are not intended to provide investment advice. Independent
Bank of Texas
can not and does not guarantee their applicability or accuracy
in regards to your individual circumstances. All examples are
hypothetical and are for illustrative purposes. We encourage you
to seek advice from qualified professionals regarding all finance
issues.
Definitions
Current age:
Your current age.
Age of retirement:
Age you wish to retire. This calculator assumes that the year you
retire, you do not make any contributions to your retirement savings.
So if you retire at age 65, your last contribution happened when you were
actually age 64. This calculator also assumes that you make your entire
contribution at the end of each year.
Household income:
Your total household income. If you are married, this should include
your spouse's income.
Current retirement savings:
Total amount that you currently have saved toward your retirement.
Include all sources of retirement savings such as 401(k)s, IRAs and Annuities.
Rate of return before retirement:
This is the annual rate of return you expect from your investments
before taxes. The actual rate of return is largely dependant on the type
of investments you select. From January 1970 to December 2003, the average
compounded rate of return for the S&P 500, including reinvestment of dividends,
was approximately 11.7% per year. During this period, the highest 12-month
return was 64%, and the lowest was -39%. Savings accounts at a bank pay
as little as 1% or less. It is important to remember that future rates
of return can't be predicted with certainty and that investments that
pay higher rates of return are subject to higher risk and volatility.
The actual rate of return on investments can vary widely over time, especially
for long-term investments. This includes the potential loss of principal
on your investment.
Rate of return during retirement:
This is the annual rate of return you expect from your investments during
retirement. It is often lower than the return earned before retirement
due to more conservative investment choices to help insure a steady flow
of income. The actual rate of return is largely dependant on the type
of investments you select. From January 1970 to December 2003, the average
compounded rate of return for the S&P 500, including reinvestment of dividends,
was approximately 11.7% per year. During this period, the highest 12-month
return was 64%, and the lowest was -39%. Savings accounts at a bank pay
as little as 1% or less. It is important to remember that future rates
of return can't be predicted with certainty and that investments that
pay higher rates of return are subject to higher risk and volatility.
The actual rate of return on investments can vary widely over time, especially
for long-term investments. This includes the potential loss of principal
on your investment.
Percent of income to contribute:
The percentage of your annual income you will save for your retirement
goals.
Expected salary increase:
Annual percent increase you expect in your household income.
Years until retirement:
Number of years before retirement.
Years of retirement income:
Total number of years you expect to use your retirement income.
Percent of income at retirement:
The percent of your working year's household income you think you will
need to have in retirement. This amount is based on your income earned
during the last year you will work. You can change this amount to be as
low as 50% and as high as 150%.
Are you married?:
Check this box if you are married. Married couples have a higher maximum
social security benefit than single wage earners.
Include social security?:
Check this box if you wish to include social security benefits in
your retirement planning.
Expected rate of inflation:
What you expect for the average long-term inflation rate. This has been
calculated by the Consumer Price Index from 1925 to 2002 to be 3.1%.
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