Roth IRA Calculatorwill give you the ease in determining how much will your balance be at the time of your retirement. This Roth IRA Calculator will also help you in determining which institution you'll open a Roth IRA account with. There are a lot out there, some will be good for you while some will not be, all depending on your needs.
It's easy to use the calculator. The information depends on you and the institution you are interested in investing with. Most of these should be explained to you by the institution itself. You could also do a little research about Roth IRA to familiarize yourself with the key concepts. For clarification purposes, a brief explanation for each field in the calculator are provided below.
Taxable Savings at Age 17: $43,837
Roth IRA Calculator Fields:
Starting Balance - Most institution has a required starting balance minimum. But of course, you can always go above it if you are really keen in keeping money once retirement age comes. Please do not put a dollar sign ($) or a comma in between the numbers as the calculator automatically adds those.
Annual Contribution - Let's first go back to the starting balance. There are instances where the minimum starting balance can even be lowered, provided that you agree to automatically deposit a certain amount of contribution each month. If that's the case with you, all you need to do is to multiply the monthly contribution amount to 12 and that will be your annual contribution. Otherwise, please indicate the rough amount you think you'll be putting in a year to your Roth IRA account. Please do not put a dollar sign ($) or a comma in between the numbers as the calculator automatically adds those.
Current Age - Your age when you opened the account.
Retirement Age - The age in which you are planning to retire. For most people, 65 is ideal.
Expected rate of return - Simply put, the interest your money is earning. This depends on the institution you invested with. Maximum possible is 20%. Please do not put a percent sign (%) as the calculator inserts it automatically.
Marginal Tax Rate - This is the tax imposed to your per dollar of income. In this case, per dollar of interest you gain in your account. The default value is 25%.
Total Contributions - This is the total amount of money you may have contributed to your Roth IRA account. This depends on your annual contributions and the number of years you'll be contributing before you reach retirement.
(Checkbox) - If you click on the checkbox, it will automatically put $5,500 in the annual contribution amount. This is the maximum amount of money you can put in your Roth IRA Account.