Today I want to pass on a web site that I have used for some time now. It's called Firecalc, and it is a retirement calculator. While there are many, many calculators out there, this one is very interesting. It back tests your investments and retirement year for over the last two hundred years of the stock markets ups and downs.
Would your portfolio get through the Great Depression, Great Recession, or a similar financial calamity?
Firecalc can help steer you in the right direction as to what you may want to change about your finances. Whether that means saving more, starting earlier, or investing in different asset classes (like bonds), Firecalc gives you a huge amount of data.
Firecalc is a very powerful retirement calculator, but it takes a few minutes to get set up. The amount of data it gives you is amazing, but the way it gives it to you is understandable. The website has instructions, answers, and info for most questions. In addition to letting you set up a set amount of withdrawal starting in 2050 (for example), Firecalc lets you include Social Security income as well. Whether Social Security will be around in forty years is another post entirely, but it includes other options for income as well.
Overall, this tool can help you spot weaknesses in your financial plan and empower you with a sense of security even during years like 2007. If you structure a plan and stick to it, with low cost investments, you will definitely be happy when you retire. This calculator is a great tool, if you have a few minutes to work with the different settings, and will help you evaluate your finances!