Future Requirements

Help clients see the importance of saving money now

The Future Requirements calculator enables you to impress upon your client the critical requirement of saving more money. It quickly demonstrates the amount of money that must be saved in order to provide for retirement income in the future after the devastating effects of inflation and taxes. A common way to use it: You can input a family’s combined annual income and assets, then reduce those by taxes, lifestyle, debt and savings. Then you can go to the Projections portion and easily provide the Amount of Total Money needed (and it’s relative worth in today’s dollars) as well as the Earnings Rate (automatically or manually calculated) necessary to sustain that level of retirement income. The relatively-sized box on the right never fails to impress upon the clients’ mind that they will need more money than they realized to maintain their desired lifestyle. And the entire presentation can be done in 10 minutes!
Calc 14 future requirements
You can show the client the difference between consuming the account or not. You can vary time frames, interest rates and other data. (One interesting experiment is seeing what pie-in-the-sky rate of return a client will need if they do not increase their savings or drastically push back retirement.) You can also use the calculator to explain how the same income 20 or 30 years from now will spend like a much smaller income today.