Financial Strategies by Design
Advanced Planning Library
How long will my money last with systematic withdrawals?
You have worked hard to accumulate your savings. Use this calculator to determine how long those funds will last given regular withdrawals.
Should I live at home, on campus, or off campus?
Before deciding on room and board options when attending college, it may help to itemize and project expenses. These expenses will vary depending on whether you will commute from home, stay on campus or rent an apartment off campus. Use this calculator to help determine whether living on or off campus is better and to see the costs associated with these alternatives.
What are the payments on a parental (PLUS) loan?
PLUS loans are low-interest federally insured loans for parents of undergraduate students to help pay a dependent student's college cost. PLUS loans are also available to graduate and professional students. The rate is fixed 7.9% for loans made on or after July 1, 2006.
What is the value of a college education?
It may surprise you that, on average, an individual with a bachelor's degree earns approximately $57,026 per year, compared to the $34,197 average yearly salary of a worker with a high school diploma. Use this calculator to see the value of a college education. Source: U.S. Census Bureau, American Community Survey, 2006-2008.
When should I begin saving for my child's college?
When saving for college, compound interest can be your friend. However the longer you wait to start saving the less interest you will accumulate and the more you will have to save. Use this calculator to determine when to start saving for college and to help illustrate what a small amount of monthly savings might grow to if you start today.
Will I be able to pay back my student loans?
When you borrow money for college you might not be thinking about your ability to repay the loan once you graduate. Outstanding student loan balances may infringe upon your ability to qualify for a home, auto and other personal loans. Use this tool to help gauge the feasibility of your student loan repayment with your anticipated future income.
Do I have too much debt?
How much debt is too much? Use this calculator to help gauge your total debt level and what steps might need to be taken to improve your situation.
How long until my loan is paid off?
By making consistent regular payments toward debt service you will eventually pay off your loan. Use this calculator to determine how much longer you will need to make these regular payments in order to eventually eliminate the debt obligation and pay off your loan.
How long will it take to pay off my credit card(s)?
Americans today owe more money than ever before. The fact that 'interest never sleeps' means that the situation will continue to worsen unless steps are taken at the individual level to reduce or eliminate debt. Additional monthly payments can make a difference to accelerate the payoff and save yourself hundreds and thousands in interest payments. Use our calculator to figure out when you can pay off your credit card.
Should I consolidate my personal debt into a new loan?
With interest rates at historical lows, it may make sense to consolidate some of your credit card and other personal debt into a new consolidated loan, typically a home-equity loan. Consolidation loans can significantly reduce your required monthly payment because they are generally amortized over 10 or 15 years. Use this debt consolidation calculator to determine how quickly you could get out of debt and how much interest you might save.
Should I pay off debt or invest?
When you receive some extra money it may be difficult to determine whether you should invest the funds or use them to pay towards liabilities. Financial theory recommends that if your after-tax return on investments is greater than your after-tax cost of debt then you should invest. Use this calculator to help analyze your situation.
What is the balance on my loan?
If you know your current payment, the interest rate and the term remaining, you can calculate your outstanding loan balance. Use this calculator to determine the loan balance along with an amortization schedule.
What is the impact of making extra payments on my debt?
Over the course of a loan amortization you will spend hundreds, thousands, and maybe even hundreds of thousands in interest. By making a small additional monthly payment toward principal, you can greatly accelerate the term of the loan and, thereby, realize tremendous savings in interest payments. Use our extra payment calculator to determine how much more quickly you may be able to pay off your debt.
What would my loan payments be?
The loan amount, the interest rate, and the term of the loan can have a dramatic effect on the total amount you will eventually pay on a loan. Use our loan payment calculator to determine the payment and see the impact of these variables on a specified loan amount complete with an amortization schedule.
Which is better: Cash up front or payments over time?
Use this calculator to help determine whether you are better off receiving a lump sum payment and investing it yourself or receiving equal payments over time from a third party.
Home and Mortgage
Comparing mortgage terms (i.e. 15, 20, 30 year)
Different mortgage terms and rates can make the loan selection process confusing, especially if you don't plan on keeping the loan for the full term. Use this calculator to determine the total cost in today's dollars of various mortgage alternatives taking into account your opportunity cost of money.
How long will my current life insurance proceeds last?
You may think that you are adequately insured in the event of your death. It may surprise how quickly the tax-free insurance proceeds may be depleted by your survivor income needs.
How much disability income insurance do I need?
Your chances of becoming disabled are far greater than your chances of dying. It may surprise you that in December of 2010, there were over 2.5 million disabled workers in their 20s, 30s, and 40s receiving Social Security insurance benefits due to a disability.* * Source: Social Security Administration, Disabled Worker Beneficiary Statistics, ssa.gov
How much life insurance do I need?
Planning to meet the financial needs of your survivors is one of the most important and fundamental steps in creating a sound financial plan for you and your family. This step may require the purchase of a life insurance policy to ensure that your family's needs will continue to be met, even after your untimely death cuts your earnings potential short.
What are the tax advantages of an annuity?
Deposits into an annuity are not tax-deductible, however you don't have to pay taxes on the interest earned until you begin making withdrawals. This tax-deferral period can have a dramatic affect on the growth of an investment. Use this calculator to compare the tax advantages of saving in an annuity versus an account where the interest is taxed each year such as a CD.
What is the value of compound interest?
Compound interest can have a dramatic effect on the growth of an investment. Use this interest calculator to illustrate the impact of compound interest on the future value of an asset.
How much can I contribute to an IRA?
Many employees are not taking full advantage of their employer's matching contributions. If, for example, your contribution percentage is so high that you obtain the $17,500 (year 2013) limit or $23,000 (year 2013) limit for those 50 years or older in the first few months of the year then you have probably maximized your contribution but minimized your employer's matching contribution.
I'm self-employed, how much can I contribute to a retirement plan?
Compensation for a self-employed individual (sole proprietor or partner) is that person's earned income.* The starting point to determine the individual's earned income is the net profit amount from the Schedule C (or Schedule K-1 for a partnership). Use this calculator to determine your maximum contribution amount for the different types of small business retirement plans, such as Individual(k), SIMPLE IRA or SEP-IRA. *Earned Income = Net Profit – 1/2 of Self-Employment Tax – Contribution
Should I convert to a Roth IRA?
Roth IRA is a great way for clients to create tax-free income from their retirement assets. Yet, keep in mind that when you convert your taxable retirement assets into a Roth IRA you will generally pay ordinary income tax on the taxable amount that is converted. The conversion amount is not subject to the 10% early distribution penalty. Your tax-free potential is maximized if you pay the taxes from your current income or personal savings and not from your IRA. Individuals of all income levels are eligible to convert to a Roth IRA.
What is my current year required minimum distribution?
Current tax law specifies that once you reach age 70 1/2, you must begin taking RMDs annually from your IRAs and other retirement plans. Generally, the RMD amount is determined based on your prior year's IRA balance of all of your IRA assets divided by your life expectancy. If RMDs are not taken annually, you may be subject to an additional 50% penalty for the amount you were supposed to take. Please note this tool is designed to provide an estimate for individuals age 70 1/2 or older.
How much retirement income may my 401(k) provide?
It may surprise you how significant your retirement accumulation may become simply by saving a small percentage of your salary each month in your 401(k) plan. Further, it may be useful to estimate your future monthly income generated by these savings and what that means in today's dollars.
How much will I need to save for retirement?
Retirement can be the saddest or happiest day of your life. This pre-retirement calculator will help you determine how well you have prepared and what you can do to improve your retirement outlook. It is important that you re-evaluate your preparedness on an ongoing basis. Changes in economic climate, inflation, achievable returns, and in your personal situation will impact your plan.
Social security retirement income estimator
Depending upon your current earnings, Social Security can be a significant part of your retirement income. However, many factors will impact the benefit you may receive. Use this calculator to approximate your Social Security benefit. For a more accurate estimate, taking into account your earnings history, contact the Social Security Administration at 1-800-772-1213 or visit www.ssa.gov.
How long until my savings reach my goal?
Compound interest can have a dramatic affect on the growth of a single deposit. Use this calculator to determine how many years an existing savings account will take to reach your stated objective.
Save now vs. save later
A penny saved is a penny earned, but a penny saved today is a penny earning more. It is important to start saving as soon as possible for events such as retirement due to the impact of compounding. If you start saving now you will need to save considerably less than if you wait a few years. Use this calculator to determine how much extra you will need to save if you wait.
Capital gains (losses) tax estimator
Federal taxes on your net capital gain(s) will vary depending on your marginal income tax bracket and holding period of the asset. Use this calculator to help estimate capital gain taxes due on your transactions.
How much of my social security benefit may be taxed?
Did you know that up to 85% of your Social Security Benefits may be subject to income tax? If this is the case you may want to consider repositioning some of your other income to minimize how much of your Social Security Benefit may be taxed and thereby, maximize your retirement income sources.
Tax freedom day
It might surprise you how many days you would have to work to pay your estimated federal tax liability (including Social Security tax withholdings). Use this calculator to determine your Tax Freedom Day - the day you begin earning money for yourself. This calculator does not take into account sales and excise taxes, state and local property taxes, and other taxes such as car and estate taxes. According to The Tax Foundation, the national tax freedom day is April 17th meaning the average American will work 107 of 365 days a year just to pay their varied taxes.
Will my investment interest be deductible?
Interest paid on debts incurred in order to invest (such as 'margin accounts') is generally deductible to the extent that it offsets investment income (such as interest, dividends and short term capital gains). Interest payments in excess of investment income can be carried forward in hopes of offsetting future investment income. This calculator can help you better manage the use of debt as an investment tool, and more accurately time your income and interest payments to take best advantage of current deductibility laws and limitations.