How to choose the best savings calculator


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How to choose the best savings calculator

  1. 1. ==== ====Learn about how to save for retirement and get access to a millionaire by retirement Excelspreadsheet at: ====If you search in Google the phrase savings calculator, the search engine will come back with overone million results. There are hundreds of savings calculators to choose from on the internet. Buthow do you make the best choice of which is the right one for you, your family, and your personalfinance situation? There are several factors that you should consider when choosing a savingscalculator to input your data into so you receive the best advice for your individual circumstances.The Devil Is In The Details With A Savings CalculatorA savings calculator must have as many details as possible for you to input about your financiallife, number of years to be saved, monthly deposits, and projected interest rate earned. Would youwant to trust a calculator that says you can accumulate $3 million by retirement if it only asked youtwo simple questions? You will be much happier with the results and feel more confident aboutwhere you stand with your savings if the calculator is very detailed in how it examines yourfinancial life and the inputs you make into it.Savings Calculators Must Take Into Account Inflation And Other AssumptionsThe best savings calculator will take into account your savings balance, amount deposited perperiod, the intervals between your deposits, your annual rate of return, the rate of inflation, and ahost of other important factors when it returns critical information to you. You should look for asavings calculator that is designed to help you determine how much you will have available tospend each month in savings and even provide you with options to make up for any shortfalls thatit identifies. You might want to consider a savings calculator that takes into account the modernways of savings with income from multiple savings even in retirement such as continued part timework, small business income, real estate rental income, annuity payments, pensions, and otherincome sources. There are so many variables to a modern savings plan that is not taken intoaccount by many online savings calculators that are based on the traditional mindset of saving alump sum or monthly amounts.Savings Calculators Are Online As Good As The Information You Put InHave you ever heard the term garbage in, garbage out? It applies to most things in life butespecially financial planning. Your results of your plan are only as good as the assumptions thatyou put into the calculators. Do you think that you will work part time in retirement and continue toset money aside in accounts? Do you think that you will withdraw 4% of your savings or more inretirement? Make sure that you include these assumptions in your calculations. But, if you want anaccurate assessment of where you stand financially or where you need to go to accomplish yourfinancial goals, you will need to make sure that your data is inputted into these calculators as
  2. 2. accurately as possible. Your results from the calculators are only as good as the information youput in them.There are savings calculators on the internet that provide a variety of information to the user. It iscritical that you find the right calculator for the information you are looking for. Are you trying to findout what percentage of your nest egg to withdraw each month from your savings? Or, are youlooking for an answer as to how big your savings account needs to be in order to live comfortably?It is easy to find a calculator that can show you how to grow your savings with an online savingsaccount, reach your savings goal with a Money Market account, or see how you can grow yournest egg. But, remember, you will find a more detailed answer to your savings questions if you canfind a more detailed savings calculator. Many calculators online barely scratch the surface ofanalysis. Many are still stuck to the traditional savings models of our parents generation that maynot be as all inclusive as possible. Diverse and in-depth a savings calculator will result in betterestimation of your wealth in the future and better answers to your savings questions.Hank Coleman is the founder of several financial blogs, focusing on topics such as how to findinvesting opportunities and using a savings calculator to reach your retirement goals. He is anentrepreneur and professional in the government sector. Hank holds a Bachelors degree inBusiness Administration, a Masters in Finance, and is currently studying for his Certified FinancialPlanning (CFP) credentials. Always looking for a trusted financial institution for advice and tips hetends to look up information at more often than not.Article Source: ====Learn about how to save for retirement and get access to a millionaire by retirement Excelspreadsheet at: ====