PreScend — Retirement Tracker

PreScend

Retirement Tracker

Cut the noise. Chart the climb.

v0.1.0

My Accounts

No accounts yet. Add your first account above.

Assumptions & Configuration

Birth Date

Retirement Age

Life Expectancy

Yearly Inflation

%

Stock Return Rate

%

Retirement Tax Rate

%

Monthly Spending (Retirement)

$

Health Insurance / Year

$

Retirement Projection

Peak Value

--

At Retirement

--

At End of Life

--

Blue = accumulation phase (contributions + growth). Green = retirement phase (growth minus withdrawals). Dashed yellow line = retirement year.

For illustrative purposes only. Not financial advice. Actual returns will vary.

Financial Blueprint

A step-by-step framework for making the most of your money. Each step builds on the last — follow them in order and don't skip steps that apply to you.

Complete each step fully before moving to the next. Don't skip steps that apply to you.

0

Budget & Reduce Expenses

Foundation

Know where your money is going. Before you can optimize, you need to track. Cut discretionary spending first — entertainment, dining out, clothing.

What to do

Track all income and expenses — housing, food, utilities, transportation, entertainment
Discretionary expenses (entertainment, dining, clothing) are the easiest to cut first
Fixed costs (rent, utilities) are harder to change but have bigger impact when reduced
Use free budgeting tools or a simple spreadsheet

Set concrete goals

Retirement savings targets and timeline
Home purchase down payment
Vehicle, vacation, or other planned large expenses

1

Build an Emergency Fund

3–6 Months

3–6 months of expenses in a liquid, FDIC-insured savings account. Variable or uncertain income? Aim for 9–12 months.

⚡ Carrying high-interest debt (15–25% APR)? Build only a $1,000 starter fund for now, then jump to Step 3. Return to finish this step after the debt is cleared.

Good account types

FDIC-insured high-yield savings account — most common and recommended
Checking account — for money you need immediately accessible
CDs — acceptable, but note the early withdrawal penalty
I Bonds — suitable after the 12-month lock-up; 3-month interest penalty if redeemed before 5 years

Avoid these

Stocks or mutual funds — too volatile, could be down 30% when you need the money
Credit cards or HELOCs — these add debt, not savings

💡 The purpose is to avoid taking on new debt when life happens — car repairs, medical bills, temporary job loss.

2

Capture Your Full Employer Match

Free Money

Contribute at least enough to your employer's retirement plan to get the full employer match. A 50% match on 6% of salary is an instant 50% return — no investment comes close.

↪ No employer match? Skip this step and move directly to Step 3.

💡 Employer contributes regardless of your contribution? Just open the account to receive those contributions, then continue to Step 3.

Eligible plan types

401(k) with employer match
403(b) with employer contributions
SIMPLE IRA
457 plan with employer contributions
Federal Thrift Savings Plan (TSP)

Why before paying off high-interest debt?

A 50% employer match means you'd need debt at 15%+ APR for skipping the match to make mathematical sense
It's a guaranteed, risk-free return — no market investment reliably beats it

⚠️ Employer plan contributions must come from payroll deductions. Self-employed? Make employer contributions as part of Step 5 instead.

3

Pay Down High-Interest Debt

Above ~4% APR

Any debt above ~4% interest is costing you more than you can reliably earn by investing. Eliminate it aggressively before moving on.

⚠️ Always make minimum payments on all debts first — missed payments damage your credit and add fees regardless of this framework.

Two payoff strategies

Avalanche (mathematically optimal) — direct extra payments to the highest interest rate first. Minimizes total interest paid over time.
Snowball (psychologically motivating) — direct extra payments to the smallest balance first. Frees up minimum payments faster and builds momentum, but costs more in interest overall.

What about low-interest debt?

Debt under 4% (some mortgages, subsidized student loans) can be stretched to its normal term
Stock market returns historically exceed 4%, making investing the better use of extra cash at that rate
Never extend a loan's term just to "improve your credit score" — the interest rate is the only relevant factor here

4

Contribute to an IRA

$7,000 / Year

Max your IRA before adding more to a 401(k). You choose the provider — giving you access to better funds and lower expense ratios than most employer plans offer.

↪ Employer 401(k) has excellent low-cost index funds? (domestic <0.1%, international <0.2%, bonds <0.1% expense ratio, or you have access to a TSP) Consider swapping Steps 4 and 5.

Roth vs. Traditional IRA

Roth IRA — contribute after-tax dollars; all growth and withdrawals in retirement are tax-free. Best if you expect to be in a higher tax bracket later.
Traditional IRA — contributions may be tax-deductible now; withdrawals are taxed in retirement. Best if you expect a lower tax bracket later.

Key details

Annual contribution limit: $7,000 ($8,000 if age 50+)
You can contribute for the prior tax year between Jan 1 – Apr 15
Recommended providers: Vanguard, Fidelity, Schwab — all offer low-cost index funds

Over income limits?

Consider a Backdoor Roth IRA — contribute to a Traditional IRA then convert to Roth. Consult a tax advisor if you already have pre-tax IRA funds (pro-rata rule applies).

💡 Need college funds within the next few years? Near-term education expenses take precedence — use low-risk accounts for goals under 3–5 years.

5

Maximize Retirement Savings

15–20% of Income

Round out contributions in your employer-sponsored plan to reach 15–20% of gross income across all retirement accounts. Tax-advantaged space is limited — use it before taxable accounts.

Target ranges

15–20% of gross income is the standard recommendation for retiring on time
10% minimum if you're getting a late start — any amount invested now helps

Account options

Continue 401(k) / 403(b) contributions via payroll up to the annual limit
Self-employed: Individual 401(k), SEP-IRA, or SIMPLE IRA for employer contributions
Taxable brokerage account if no employer plan is available

💡 High-expense 401(k)? Still contribute for the tax deferral. When you leave the job, roll the balance into an IRA where you control the fund selection.

💡 Advanced: If your plan allows after-tax contributions beyond the standard limit, look into the Mega Backdoor Roth for additional tax-free retirement space.

6

Save for Other Goals

Flexible

With remaining discretionary income, fund the rest of your financial life. Prioritize tax-advantaged accounts before taxable ones wherever possible.

HSA

Triple tax advantage: deductible contributions, tax-free growth, tax-free withdrawals for medical expenses. At age 65 it functions like a Traditional IRA for any expense.

529 Plan

Tax-advantaged education savings for yourself, your children, or other family members. Grows tax-free when used for qualified education expenses.

Short-Term Goals

House down payment, car, vacation (1–5 year horizon). Use FDIC savings, CDs, or I Bonds — keep this money out of the stock market.

Long-Term / FIRE

Taxable brokerage with low-cost index funds. Max tax-advantaged accounts first — taxable accounts are less efficient but have no annual limit.

💡 Once health care, education, and retirement are well-funded, consider charitable giving — monetary or non-monetary contributions to causes you care about.

Framework based on the r/personalfinance Prime Directive flowchart. For informational purposes only. Not financial advice.