Fidelity MyPlan Retirement Calculator

If you want to get a ballpark estimate of how much you need to save monthly to meet your retirement goals, and want a friendly painless internetty wayt to do it, Fidelity has the myPlan snapshot. It’s very Fisher-Price basic, but might be good for people who are terrified of the topic. —MEGHANN MARCO

Fidelity myPlan [via My Money Blog]

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  1. muddgirl says:

    Their target calculation looks fine, but it seems to me like they’re seriously underestimating the amount of accrual. When I put in my retirement savings values, it predicted that I’d be seriously under target, which does not agree with my own calculations. So I tried saving $100 a month for 40 years in a zero-interest account. The number should be $480k. They say I’ll only have $190k.

    It seems to me that Fidelity Investments is doing some “creative bookwork” to attract more customers…

  2. muddgirl says:

    Damn, I added a zero. Never mind that second calculation. My first assertation stands, though.

  3. NeoteriX says:

    I think it’s pretty neat little calculator, and honestly, concerning finances, investing, and your long term financial health, it never hurts to estimate conservatively and undershoot the figures.

  4. orielbean says:

    remember that past performance is never a guarantee of success. I work at this place, and they are very restricted by multiple regs about what they can and cannot claim for ROI (return on investment). They even have to be picky with bland vanilla savings accounts and so on. Better that they underestimate than try to sell you a mutual fund bridge in Brooklyn! Diversify Diversify Diversify.

  5. thereviewer says:

    I am also not on this bandwagon. It tells me I am going to need 3.8 million when I retire at 65. Now while 3.8 million sounds good to me, earning 8% of 3.8 million is almost 300K a year in just interest earned. To live on. I do not need to live on 300K a year. Maybe they know something I do not, and will have to live on 300K a year, ain’t nothin like coke and strippers when your 65.

  6. I don’t agree with this as well. When I signed up for my 401k with fidelity last summer they told me that if I was to put in 100 dollars a month until I’m 55 that I’d have ~750000 at that point. That was also starting at nothing.

    So I put in a contribution of 500 a month on the calculator, starting with 20000 in current assets, and it tells me that I’ll have 1.5 mil by the time I’m 65. That’s with agressive investing too. It doesn’t take a rocket scientist to figure out that this thing isn’t even close to right.

  7. phrygian says:

    Wow — it’s good to know that my retirement savings will woefully inadequate, unless I put just over half of all my paychecks into retirement saving from now until I retire. Of course, if the market does poorly, even saving 50% of my paycheck won’t be enough to save me from poverty, it seems. And that’s assuming the market does well.

    Assuming I retire at 65 and live until I’m 95, somehow the myPlan tool wants me to live on ~50k a year more than I currently make annually. How does this even make sense? How long do they expect me to live?

    I realize that I’ve gone through a few lean years when I haven’t able to cap out my IRA, but 1.) I have 30+ years before I can retire and 2.) this tool doesn’t jibe with what my Fidelity savings account’s estimates.

  8. FKidd says:

    Perhaps some of these numbers take into account time value of money and others didn’t which could explain all these discrepancies in yours vs the Fidelity calculator and/or Fidelity financial advisors calculations.

  9. womynist says:

    Let’s not forget compounding interest.