The Ultimate Retirement Planning Guide
Build a Tax-Efficient Retirement Strategy
Combine these tools to account for investment growth, inflation, and withdrawal strategies. Updated for 2024 contribution limits and tax laws.
1. Model Tax-Advantaged Growth
Roth IRA Calculator
2024 Contribution Limits
- Under 50: $7,000/year
- 50+: $8,000/year (catch-up)
Example Scenario
Age 30 to 65: $7,000/year at 7% return = $1.1M tax-free
Student Exercise
Compare Roth vs Traditional IRA for a 25-year-old in the 22% tax bracket.
Roth: Pay 22% tax now, withdraw tax-free. Traditional: Deduct now, pay taxes later.
401(k) Calculator
Employer Matching
Case Study: $50k salary with 5% match = $2,500 free money/year
Pre-Tax Advantage
$23,000 contribution at 24% tax bracket = $5,520 immediate tax savings
Professional Tip
Use Loan Comparison Tool to evaluate 401(k) loans vs. hardship withdrawals.
2. Adjust for Inflation
Inflation Calculator
Historical Averages
- 3.8% long-term average (1914-2024)
- 2.5% recent Fed target
Retirement Impact
$50k today ≈ $112k in 30 years at 2.5% inflation
Real Return Calculator
7% nominal return - 2.5% inflation = 4.5% real return
Student Exercise: Calculate purchasing power of $1M after 20 years at 3% inflation.
3. Sustainable Withdrawal Strategies
The 4% Rule
Withdraw 4% of savings annually, adjusted for inflation. Model scenarios:
- $1M portfolio = $40k/year
- 75% success rate over 30 years
Modern Adjustments
Consider 3-3.5% for early retirees or market downturns.
Required Minimum Distributions (RMDs)
Key Rules
- Start at age 73 (SECURE 2.0 Act)
- Penalty: 25% of undistributed amount
Calculation Example
$500k IRA at age 75 (life expectancy 24.6) = $20,325 minimum withdrawal
Your Personalized Retirement Checklist
- Calculate growth using Roth and 401(k) tools
- Adjust for inflation with Real Return Calculator
- Plan withdrawals via RMD Tool and Retirement Calculator
- Re-evaluate annually or after major life changes