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The Optimal Retirement Planner
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| Tax-deferred Savings Accounts | Max out tax-deferred contributions (IRA, SEP, 401K, etc.). Reduce taxes now, enjoy the benefits later. |
| The Miracle of Compounding | Investments give off returns which are reinvested, which then give off more returns. The earlier the investment the more money for retirement. Tax-deferred savings compound to larger amounts than do conventional savings because they are not taxed each year, only when they are withdrawn. |
| Compounding Continues | Even after retirement, when contributions stop and withdrawals begin, the portfolio continues to grow for some years thanks to compounding. |
| Inflation | The wrecker of retirement plans. The good news is that Federal fiscal and monetary policies are providing price stability. |
| Taxes | The graduated personal income tax on tax-deferred withdrawals sometimes challenges the conventional wisdom of withdrawal strategies. |
| Optimal Withdrawal Strategy | Optimization maximizes after-tax retirement spending by annually minimizing taxes while meeting minimum withdrawal requirements. |
Google Retirement Calculator and over 2 million hits are returned.
See links
for a small sample of retirement calculators.
Retirement calculators can collected into these classes:
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The last class has only one member -- The Optimal Retirement Planner (ORP). This is because ORP is more than a calculator; ORP is an optimizer.
Definition: Optimization - a mathematical technique for finding the maximum of a function of many variables subject to a set of constraints. To put it another way; optimization is the selecting of the set of choices that makes the most money without breaking any of the rules
ORP offers insights into both phases of the retirement cycle:.
ORP does not ask for estimated annual expenditures. Instead, ORP shows how much after-tax, inflation adjusted
money will be available for spending each year.
ORP maximizes retirement cash flow from investment returns and drawing down the account's capital to a given estate level at the end of the plan. ORP's linear programming optimizer maximizes the cash available for spending during retirement by modeling compounding investment returns, inflation, income taxes and minimum withdrawal requirements.
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1961-1981 Max out that 401K! |
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1943-1960 Early Retirement? |
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1925-1942 Into Retirement. |

ORP is supported by Sundown Software Systems which provides the linear programming model formulation and optimization software. Sundown Software Systems and James S. Welch, Jr. are not engaged in the sale of financial products or services.
Use of the ORP optimizer
is free and private. ORP is available for use without warranty of any kind.
We ask that you tell us how you heard of ORP and contribute your opinion about this site
by sending us an e-mail at
orplanner@gmail.com
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Hosted by The NERDS Group |
© 1998-2007, James S. Welch, Jr. |
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