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A Couple of Awesome Retirement Planning Tools

A Couple of Awesome Retirement Planning Tools

The sooner you begin to plan and save for retirement, the better your chances of being able to live well during your golden years. However, planning and saving for retirement is often easier said than done. While everyone will agree that saving for retirement is the right thing to do, we often put it off.

Many of us do not save for retirement due to the fact that we can’t find room in our budgets to save money. In addition, it’s also common to make the decision not to save for retirement because we place more value on spending our money today rather than years in the future.

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The final reason why we usually don’t save for retirement is that we don’t have a retirement plan, thus don’t know how much we will need in order to retire. There are a couple awesome (and free) online tools that will help you build a retirement plan. These tools will help you calculate how much you need to save and how much you can afford during retirement by answering two critical retirement questions.

How Much Will I Need to Retire

The first step in the retirement planning process is to determine your annual income needs during retirement. Your post retirement cash flow needs will be heavily contingent on your desired standard of living and “must pay” expenses such as your mortgage, utilities, food and clothing.

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Once you have estimated your annual expenses during retirement, you should then determine how much you will need to save and invest on an annual basis in order to retire on time. The amount of money that you will have to save on an annual basis will depend on how many years you have until retirement, your expected investment growth rate and inflation over the same period.

After you have gathered your retirement planning information, you can use the Wall Street Journal’s Retirement Planning Tool to calculate how much you will need to retire. This application is one of the most robust free retirement planning tools available online. Not only will you be able to develop your retirement plan, but also perform what-if analysis to help you make better financial decisions.

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How Much Can I Spend During Retirement

Another common issue when it comes to retirement planning is determining how much of your nest egg you can spend during retirement. This question is usually raised under stress when nearing or getting close to retirement. The amount of money that you will be able to draw from your accounts in your golden years will have a huge impact on your quality of life.

More often than not, calculating your nest egg withdraw rate entails making a few assumptions. Planning factors such as length of retirement, starting portfolio balance and owned asset classes are critical in determining what percent of your funds you can withdraw on an annual basis.

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If you are planning to use your taxable portfolio for retirement income, Vanguard provides a Retirement Nestegg Calculator that allows you to determine how large your portfolio will need to be at the start of retirement and an estimate of a feasible nest egg withdrawal rate given your retirement expectations.

Despite the fact that Vanguard’s Nestegg Calculator is easy to use, it has a robust simulation function that allows you to determine the probability that you will be able to draw on your nest egg through retirement. You can use this functions to perform what-if analyses by changing the various assumptions and re-running the simulation.

When developing your retirement plan remember that the sooner you start the easier it will be. The most efficient way to answer the most popular retirement planning questions is to use free online retirement planning tools.

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Last Updated on August 15, 2018

30 Fun Things You Can Do This Summer Without Spending Much

30 Fun Things You Can Do This Summer Without Spending Much

Summertime can be a real strain on your wallet. The sun is out, there are people to see, places to be; it’s no wonder you might be short of funds during these sunny months. Not everything has to cost you an arm and a leg.

Take some time to go through this list of 20 cheap summer activities and make some realistic goals to complete as many as you can.

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1. Visit a strawberry festival

Summer is prime time for tasting strawberries. More often than not, an area that grows strawberries will have a strawberry festival. Indulge yourself in strawberry pies, jams, cakes and more!

2. Have a picnic

Take your partner or your family to the local park and enjoy a relaxing picnic. Designate each person to bring one food item of their choice to add to the fun.

3. Camp in your back yard

    The summer heat can sometimes make it hard to sleep. Why not enjoy the heat outside in the yard? Pitch a tent or gaze into the night sky.

    4. Take long walks

    Discover something new where you live. Take the afternoon off from your chores and go for a long walk. You may be surprised by what you discover.

    5. Break a world record

    Breaking a world record doesn’t have to be time-consuming. You could even break one on your lunch hour. Give it a go!

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    6. Go on a bike ride

    The number of bike paths on roads in big cities has increased dramatically over the years. Take advantage, and enjoy the summer breeze.

    7. Join a gym class

      The gym is not everyone’s idea of a good time, but why not go with a friend a join a class? Spinning, yoga and step classes are always more fun with friends, and a lot of gyms allow you to pay-as-you-go.

      8. Find a new hobby

      The summer is the perfect time to find a new hobby. Serotonin (our body’s natural “happy” hormone) is produced by the sunshine and will be at a yearly high, which is great for when we want to tackle something new.

      9. Join a sports team

      Not all sports teams are competitive and require huge amounts of your time. Join in the fun with like-minded people, get fit, stay healthy and make some friends along the way.

      10. Make a slip ‘n slide

        Gather your friends, some plastic sheeting, a hose, washing up liquid if desired, and make a huge slip ‘n slide just like these guys. Granted, yours won’t be as big, but you get the idea… it’s fun!

        11. Make a treasure hunt for your kids

        Today’s digital world sees our children more often than not playing inside than outside. Why not create a sense of adventure by making a treasure hunt? Only rule? It has to be outside.

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        12. Visit a free festival

        Towns and cities are awash with free festivals, with themes from film to science. Scout your local area and discover something new.

        13. Visit the zoo

          Let’s face it: we love animals. While browsing news websites and social media networks you’re bound to come across a few pictures of cats. Take a trip to your local zoo for a better experience.

          14. Take a road trip

          Enjoy the open road with a few friends and take a road trip somewhere–anywhere. Just go out and enjoy the sunshine!

          15. Play ultimate frisbee in the park

            Frisbee is always great fun down the park, but why not turn it into more of a competitive sport by playing ultimate frisbee?

            16. Make your own ice cream

            Ice cream is a very versatile dessert. Make a sandwich, enjoy a cone, or simply just enjoy a bowl full. Better yet, making your own ice cream allows you to create any flavor you want.

            17. Invite your neighbors over for a BBQ

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              When was the last time you invited your neighbors over? Do you even know them? Now’s your chance. Just ask each person to bring a food item so costs don’t mount up for you.

              18. Get a summer job

              For many students, summer is the time for relaxation and fun. But who said earning money and being productive isn’t fun? You only get out what you put into a situation.

              19. Attend a charity event

              Attending a charity event is a great way to raise funds and awareness for a cause, meet new people, and generally have a good time. Search for your local charity event today.

              20. Visit a national park

              National parks are a great way to explore nature and learn something new. You could even volunteer and make a difference in helping restore natural habitats.

              21. Visit your local comedy club

                Local comedy clubs are extremely underrated. They are cheap to attend and no doubt you’ll have a barrel of laughs.

                22. Make your own hammock

                  Hammocks are very relaxing, are perfect for summer afternoons and are surprisingly easy to make.

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                  23. Read in your new hammock

                  Now you have your very own hammock, the only thing left to do is enjoy it. Grab your favorite book and read to your heart’s content.

                  24. Watch a movie outside

                  Movies are great. Relaxing outside in the evening is great. Put them together and you’ve got a perfect combination. In D.C, Maryland and Virginia this summer, for example, you can enjoy a huge number of movies outside.

                  25. Take a hike

                    Hikes are a great way to keep fit and see more of Mother Nature. There are countless trails available for you to explore. Why not try some this summer?

                    26. Learn how to fly a kite

                    As a child, you probably had a kite and haven’t touched it since. Why not dust it off and attempt to fly it? It’s tricky, but well worth the challenge.

                    27. Work out at the park

                    American cities are full of parks with ample space for a work out session. No doubt you’ll be happier to work out in the sun rather than a crowded gym.

                    28. Take your dog to the beach

                      One of the many joys of owning a dog is taking him or her for long walks during the summertime. This joy is enhanced when visiting the beach, for both you and your dog.

                      29. Make a summer smoothie

                      Healthy, delicious and perfect for the summer. Not only that, there are countless recipes ready for you to try.

                      30. Attend a free yoga session at the beach

                      No experience needed and all skill levels are welcome. Take yourself and a buddy down to the beach and try some yoga. You’ve got nothing to lose!

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