Retirement Calculator

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Retirement Savings Calculator

Financial Planning

Once you get to a point where you are no longer living paycheck to paycheck, you will find that the discipline you learned to build savings can be leveraged for future goals.  For most Americans, buying a home is the first step to wealth.  This is because three things happen; 

  1. First, your home increases in value over time.  This means that as you live in that home, the increase in that value is yours if you ever sell it or refinance it.  Most people are unaware that after two years of living in the home, any gains you accumulate are also tax free.  This is how many people are able to start businesses, buy bigger and nicer homes, and cushion their savings accounts to weather any financial difficulties that may occur.
  2. Your mortgage payment only goes up with your taxes or insurance rates.  This means you don’t have to worry about a landlord raising your rent.  As time goes on, most people’s pay increases meaning the mortgage payments become easier to make over time.  This also allows for more money to be applied to your savings and investments.
  3. Part of that monthly payment is going towards your principal balance.  Simply put, you are paying down what you owe and the longer you pay, the more of that monthly payment is applied towards the principal.   So, between the growth in value, and the decline of the mortgage balance, you are building a nest egg of cash that can be accessed in your future.

So, now you own a home, you have your debt under control by not overpaying in interest and fees and you know how to build a savings.  Once your savings gets to the point where you have more than you would need for emergencies, you now have the ability to look at other investments that will give you a higher yield than your savings account will.  Many people will look at stocks, mutual funds, IRA’s, 401K contribution, Gold and Precious metals, and Cryptocurrencies in order to accumulate more money for when they reach their retirement age.  These same tools can also be used to assist your children in paying for college, setting up your retirement plans such as buying an RV or a second home or whatever your long term goals are.

Get in touch! We look forward helping you reach your goals.