About Retirement Calculator, Inc.

Recommended Reading

• The Nervous Retiree
• Why You Need Retirement Calculator Software
• Analysis of the Economics of Early Social Security Withdrawal

Advisor Income

Advisor Income: How Does it Affect Your Retirement Savings?

Most everyone - whether they have actively been saving for and investing in their retirement or not - understands that it is important to consider the future and to plan for it. Some people, however are a bit more skeptical about retirement savings and that skepticism stops them from pushing forward, setting goals and developing a plan for reaching them. Their skepticism isn't usually directly related to their own retirement income, it usually has a lot more to do with advisor income .

Specifically, rather than being concerned about whether or not they will have the income that they need once they retire because of money that they have saved and invested, they get caught up in the fear that advisor income is the only thing that matters to the financial advisors in their area. They are concerned that, for every savings account, stock certificate, savings bond and mutual fund that their financial advisor recommends, they are making a contribution simply to advisor income - funding their retirement planner's savings more than their own.

With the retirement calculator that you can download on this page, you will find that you are able to plan for your retirement and talk with a financial advisor who is more concerned with helping you to reach your savings and investment goals than his or her own. The retirement calculator will help you to take a closer look at the savings that you have and whether or not your accounts are accumulating interest at a competitive rate; you will even be able to compare different savings plans on your own to see whether or not another plan would be better for reaching your goals.

Similarly, you will be able to use the retirement calculator to look at stocks, mutual funds and investment packages that will allow you to get a feel for whether or not those investments would help you to reach your income goals. Look at stocks and mutual funds. See how they have performed over time and how they are projected to perform in the future. Get a sense of whether or not they will help you to achieve your financial goals.

When you receive a free follow up call from a financial advisor, you will have already done your research and established a sense of whether or not particular accounts would be right for your needs. You will be able to ask questions and get answers and advice, but you won't have to focus on the advisor income because you will still be in control of whether or not an account is right for you - you will be able to check it out using the retirement calculator.

Don't let your concerns about advisor income and misleading advice stop you from saving for and investing in your future. Take steps to get the knowledge that you need, understand your goals and the options that will help you to accomplish them and work with the right advisors - financial advisors who you can trust. It's easier than you may think.

Find a Qualified Financial Planner in Your Area

Do You Know the Answers to These Important Retirement Questions?

• Are you retired or thinking about retiring?
• Do you have enough money to comfortably live throughout your retirement years?
• Would you like FREE face to face advice or retirement consulting from a trusted local financial advisor?
• Are you looking for help to achieve your long-term financial goals?
• Would you like to learn more about Annuities, 401's, Life Insurance and Long Term Care?

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Analysis of the Economics of Early Social Security Withdrawal

Robert J. Phillips
Chief Retirement Consultant

Deciding whether or not to take the early withdrawal of social security at age 62 can be difficult. If you need this income at 62 to fund your retirement the decision is fairly straightforward. Take it early! On the other hand, if you have another source of revenue to fund your retirement your decision will be primarily based on lifestyle, health and investment preferences.

Several factors can affect your decision. First is your life expectancy. If you are in good health and have a family history of living beyond 90 then waiting for full benefits may be best. Two other factors impact this decision. First and most important is the value of money or your expected return from your investments. If you are using other investments instead of social security to fund your retirement you should use the rate of return of these investments as your value of money. There is another way to look at the value of money. If you do not require the social security money to live, you can invest the distributions for the future. The rate of return of this investment is your value of money. If your investments will make larger returns such as stocks this would favor taking the early withdrawal.

The last factor impacting your decision is inflation. Social security includes an annual adjustment based on inflation. You cannot control this variable but you should be aware of its impact. If future inflation is significant it will favor a later full distribution

FREE Social Security Calculator:

We developed a calculator to assist in analyzing the impact of taking early benefits at age 62 or waiting for full benefits at age 66 to 67 depending on the year you were born...If you were born in 1960 or later your full benefits will begin at age 67 and your reduction for early benefits at age 62 will be 30%. If you were born between 1946 and 1960 your full benefits begin as early as age 66. We have included a chart that summarizes information.

To use the calculator you need to input your year of birth. You also need to input a value of money up to 10% and a projected inflation adjustment. The calculator analyzes income generated over time from both the early and full benefit investments. It calculates the age at which full social security will catch up and breakeven with the early withdrawal. If you were born before 1960 your breakeven age will be impacted by the year you were born. An early breakeven age favors waiting for full benefits.

The social security calculator is not the final answer whether to take an early withdrawal but it does give you additional economic data to assist in that decision. Ultimately you must balance income, investments and lifestyle to optimize your enjoyment during your retirement years.