Main Scenario: Balances & Income (Projections Over 35 Years).

Long-term financial projections establish BENCHMARKS – against which your ACTUAL retirement expenses and account balances can be compared. Staying on track becomes a process of making periodic MINOR adjustments while avoiding big surprises.

Main Scenario:  Distributions & Taxes

Main Scenario: Distributions & Taxes (Projections Over 35 Years).

Projections can WARN you of potentially serious problems. The most critical, of course, is running out of money. Another is HIGH TAXES caused by Required Minimum Distributions (beginning at age 70 ½ for traditional IRAs and tax-deferred Employer Plans, but NOT for Roths, Annuities, and after-tax accounts).

Take the time to compare these PROJECTED balances to the earlier chart showing your REQUIRED savings. Here TOTAL retirement income is shown (pension, investments, etc).

Income taxes will be one of your largest retirement expenses and must be incorporated fully in your plans. Just remember that financial plans are never intended as tax or legal advice. The calculations are based on tax code provisions in effect at the time of this report – and your actual taxes may vary considerably from these projections.