Beware Of Investment Company Retirement Calculators
By John V. W. Howe
As a part of your planning, have you considered a post job?

Continued income from a post job can have a very positive impact on your finances.
Let’s do a fast calculation to see the positive impact of a post job. Let’s calculate the amount of investment that you need to generate a monthly income of $1,000 per month.
To do this we must make a few assumptions. Assume the income generation rate of your investments is five percent (5%). Let’s assume that we are not going to take any principle from your investments to do this. This will leave the principle intact for use later after you have stopped working in your job.
The calculation is how much principle is needed to generate $12,000 per year ($1,000 per month). The formula is principle divided by the income interest rate ($12,000/.05 = $240,000). I think you will agree that is a large amount necessary to generate $1,000 of income per month.
However, a thousand dollars per month is not too large an amount to expect to make in a post job. Just look at the impact that it has on preserving your investment.
A calculator can help you determine the impact of a post job on your finances. Be cautious of the calculator that you select.
When looking for a calculator to help you calculate the impact of post job income, don’t bother to look on investment company websites. Those calculators do not use income in the calculation. Why? With post income, a calculator will show that you do not need to save (and invest) as much as you do when you do not receive income from a job after retirement.

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