Retirement & Goals

Retirement Planning: The Power of Starting Early

Retirement planning is not about "saving money"; it is about replacing your income. The UnitMaster Retirement Planner helps you calculate the "Corpus" (total pot of money) you need to survive without a salary.

Concept: The 4% Rule

A popular rule of thumb in finance is the "4% Rule". It states that you can safely withdraw 4% of your retirement savings each year (adjusted for inflation) without ever running out of money.

• If you need $40,000/year to live, you need a corpus of $1,000,000.
• If you need $100,000/year to live, you need a corpus of $2,500,000.

The Magic of Compounding

Albert Einstein reputedly called Compound Interest the "Eighth Wonder of the World".
Example: If you save $500/month starting at age 25, you might have $1.7 million by age 65 (at 10% return). If you wait until age 35 to start saving the same amount, you will only have $600,000.The 10-year delay costs you over $1 million.

Inflation: The Silent Killer

$1 million today will not buy $1 million worth of goods in 30 years. If inflation averages 3% per year, the purchasing power of your money halves every 24 years. Our calculator helps you factor this in by allowing you to adjust your "Expected Return" (try using a "Real Rate of Return" relative to inflation).