If you are using Internet Explorer, you may need to select to ‘Allow Blocked Content’ to view this calculator. Need to figure out how much money will be in your Roth IRA account when you retire? This calculator will help you compute the estimated balance at retirement. Although contributions to a Roth IRA account are not tax deductible, as they are with traditional IRAs, the earnings in your account are never taxed.
Pretax retirement savings does not equal post tax funds. Make sure you take this into account when you do your retirement planning, or risk a true awakening when you can least afford it. For example, any retirement accounts like the SEP IRA, Traditional IRA, and 401k is worth less than the number you see on your statement. Others, like the Roth IRA or your taxable investment account, is worth the full amount.
This sounds trivial, but let’s use a hypothetical example to drive home this important point. 100,000 for retirement already saved up is a substantial amount, but is it really that much? Okay, You Have My Attention, Now What Even though the point I’m making is fairly obvious, many of us don’t think about the true value of our nest egg when we just glance at our 401k and IRA statements every quarter. If you are actively planning for your retirement, I strongly suggest doing a similar calculation and see if you are still on track. Here Are Two More Retirement Savings Options You Might Not Have Considered And now that you are thinking about the difference of pre-tax and post-tax retirement savings, let’s take a look at another two options you hear about less often. But there are a few other retirement savings account options you might not be aware of that could be better for you, financially. IRA This one was new to me, so I’m guessing it could be new to you, too.