Retirement Contribution Effects on Your Paycheck Calculator

[Omaha Steve]

http://www.aarp.org/work/retirement-planning/contributions_paycheck_calculator/

[doc03]

1. They moved or removed it n/t

[Earth Bound Misfit]

2. How bout this one.

http://www.aarp.org/work/retirement-planning/contributions_paycheck_calculator/

[doc03]

3. Ok I got it. The problem with these calculators is

they always use a hypothetical growth rate that makes it appear you are going to be rich if you just make regular contributions to a 401k. This one assumes a annual growth rate of 8% the annual growth rate in the last decade for stocks was ZERO. I remember when American Express came to our company pushing their 401K, according to their figures if I made my regular contributions they recommended I would retire with x dollars as it turned out I have only about 1/3 of that figure. A co-worker of mine didn't sign up for the 401k he said what is going to happen they will sucker us baby boomers into putting our money into the stock market which will drive up the prices. Then once us boomers reach retirement age and start withdrawing our savings it would drive the market back down. I thought the guy was full of it, he always had a negative attitude on everything. A couple years ago we compared our balances mine in the 401k and his in CDs. I had slightly more than him but his taxes are paid so once I withdraw and my taxes are taken out he comes out better.