New Feature in Retirement Calculator Helps You Identify “Excess” Income in Your Retirement Plan
- Find out if you have any future “excess” income built into your retirement plan
- Specify if the “excess” income should be spent or saved
This update could have a big impact on how accurate your plans will be and it is not something that many online planners give you any control over. We make it easy to find out how much money you just happen to have laying around in your plan! What impact will an extra $5,000, $50,000 or more have on your future?
What is Excess Income?
Excess income is income that you predict you will have in the future that is not being explicitly saved or spent.
You will have “excess income” in your retirement plan anytime your monthly income from ALL sources — including Required Minimum Distributions (RMDs) — is higher than what you have specified for your total monthly expenses.
Why Would You Have “Excess” Income?
In the NewRetirement retirement planning calculator, you can set numerous retirement income streams (work, Social Security, pension, etc.) and vary the amount of money you receive from those sources each year.
You can also vary your expenses, as well as how much you plan to save each month in each of your accounts. This customization enables you to have a more detailed and realistic plan. However, this level of detail can make it easy to have your income and expenses out of sync.
Find Out How Much Money You Have Virtually Hiding in Your Plan!
If you already have a NewRetirement account, you can log in here and the system will take you to the Work and Other income page and the “excess income” feature. You will see exactly how much excess income accumulates in your plan over your (and your spouse’s) lifetime.
If you are new to the NewRetirement retirement planning calculator, you will see your excess income after you create an account and set up a basic outline of your plan. The excess income feature is on “Work and Other Income” page.
Decide if You Will Save or Spend Your Excess Income
If you have excess income in your plan, you can now decide whether you think it is more likely that you will save or spend this money.
In fact, you can now specify exactly what percentage of this excess income should be saved.
Save: If you are someone who carefully monitors their cashflow and are good at saving extra money, then you might tell the system to save 100% of your excess income.
Spend: On the other hand, if you are someone who might be more apt to simply spend whatever money you have earned each month, then you might want to specify that the system saves 0% of the projected excess income.
You can also take a closer look at your income and expenses to try to reconcile or eliminate the excess income.
PlannerPlus Coming Soon
PlannerPlus is a add-on to the NewRetirement retirement planning calculator.
It is a set of advanced features and tools that are designed to help people who are serious about retirement planning create, monitor and maintain detailed and reliable plans.
For example, PlannerPlus will make it easy to identify when and why you have excess income. If you like charts and analysis, you will love these new features.
If PlannerPlus interests you, you can join the waiting list now. We are close to the first release.
About the NewRetirement Retirement Planning Calculator
The NewRetirement retirement planning calculator is a comprehensive and detailed tool designed for anyone who is worried about their retirement — especially people nearing the end of their careers or just beginning this stage of life. It is easy to get started, see a personalized assessment and find ways to strengthen your plan.
Best of all, your data is always saved so it is easy to try different scenarios, make adjustments and manage your finances moving forward.
This tool has been named a best retirement calculator by the American Association of Individual Investors (AAII), Forbes Magazine, The Center for Retirement Research at Boston College, MoneyBoss, CanIRetireyet and many more.