About Retirement Calculator, Inc.

Recommended Reading

• The Nervous Retiree
• Why You Need Retirement Calculator Software
• Analysis of the Economics of Early Social Security Withdrawal

Advisors Income

Advisors Income: Are You More Concerned About it Than Your Retirement?

Have you been actively saving for your retirement, or do you have too many concerns about advisors income to listen to their advice seriously and to believe that it is meant to help you reach your goals? Have you looked into talking with a financial advisor about investing in stocks or mutual funds only to decide to blow it off because you're nervous that all of the suggestions will be focused on one thing - the advisor's income? If so, unfortunately you're not alone.

However, it is essential that you let go of the concerns that you have about advisors income because your choice to not save for your retirement or to seek their advice is going to do a lot more to damage your financial future than it will to anything else. If you are unwilling to look into great investments - whether they are in individual stocks or in mutual funds - because you wonder how much advisors income is going to be made, you are likely to pass up some great opportunities. Worse than that, there is a risk if you let your concerns get in the way of never moving forward with a savings and investment strategy that will get you to where you want to be.

Setting aside the concerns that you have about advisors income and the way that it may affect the products they suggest is something that is much easier to do when you are able to get a lot of the information that you need on your own. When you are able to look at stocks, bonds, mutual funds, individual retirement accounts, 401k accounts and other tools for saving and investing in your future, it's easier to trust the advice that you receive from a financial advisor.

That's something that you can test for yourself. When you download the free retirement calculator on this page, your contact information will be sent to a financial advisor in your area who will place a follow up call once you've had a chance to do some research on your own. Use the retirement calculator. Look at different stocks and mutual funds to see how they have performed in the past and how they are expected to perform in the future. Look at savings accounts and retirement account options to compare interest rates and returns to get a feel for which will best help you to reach your goals.

Then, when you talk with a financial advisor during the follow up call, you're likely to discover that he or she is less concerned with advisor income than with helping you to reach your goals. You will be able to look at each investment product or savings account type that he or she suggests and see whether or not it will help you to reach your goals. More importantly, you'll soon realize that not all of the advisors out there are more focused on their own income.

If you're more concerned about advisors income than you are about your own retirement, there's no way that you will be prepared when the time comes for you to retire. Take advantage of tools that will help you to get a sense of what's right for you and work with an advisor who can help you put your plan into action. You'll be glad you did.

Find a Qualified Financial Planner in Your Area

Do You Know the Answers to These Important Retirement Questions?

• Are you retired or thinking about retiring?
• Do you have enough money to comfortably live throughout your retirement years?
• Would you like FREE face to face advice or retirement consulting from a trusted local financial advisor?
• Are you looking for help to achieve your long-term financial goals?
• Would you like to learn more about Annuities, 401's, Life Insurance and Long Term Care?

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Analysis of the Economics of Early Social Security Withdrawal

Robert J. Phillips
Chief Retirement Consultant

Deciding whether or not to take the early withdrawal of social security at age 62 can be difficult. If you need this income at 62 to fund your retirement the decision is fairly straightforward. Take it early! On the other hand, if you have another source of revenue to fund your retirement your decision will be primarily based on lifestyle, health and investment preferences.

Several factors can affect your decision. First is your life expectancy. If you are in good health and have a family history of living beyond 90 then waiting for full benefits may be best. Two other factors impact this decision. First and most important is the value of money or your expected return from your investments. If you are using other investments instead of social security to fund your retirement you should use the rate of return of these investments as your value of money. There is another way to look at the value of money. If you do not require the social security money to live, you can invest the distributions for the future. The rate of return of this investment is your value of money. If your investments will make larger returns such as stocks this would favor taking the early withdrawal.

The last factor impacting your decision is inflation. Social security includes an annual adjustment based on inflation. You cannot control this variable but you should be aware of its impact. If future inflation is significant it will favor a later full distribution

FREE Social Security Calculator:

We developed a calculator to assist in analyzing the impact of taking early benefits at age 62 or waiting for full benefits at age 66 to 67 depending on the year you were born...If you were born in 1960 or later your full benefits will begin at age 67 and your reduction for early benefits at age 62 will be 30%. If you were born between 1946 and 1960 your full benefits begin as early as age 66. We have included a chart that summarizes information.

To use the calculator you need to input your year of birth. You also need to input a value of money up to 10% and a projected inflation adjustment. The calculator analyzes income generated over time from both the early and full benefit investments. It calculates the age at which full social security will catch up and breakeven with the early withdrawal. If you were born before 1960 your breakeven age will be impacted by the year you were born. An early breakeven age favors waiting for full benefits.

The social security calculator is not the final answer whether to take an early withdrawal but it does give you additional economic data to assist in that decision. Ultimately you must balance income, investments and lifestyle to optimize your enjoyment during your retirement years.