Free Retirement Calculator — Project Your Savings | PreScend

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

$

Annual Income (Gross)

$

Monte Carlo Simulation

Run thousands of randomized market scenarios to estimate your probability of retirement success.

Simulations

Annual Volatility

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Retirement Projection

Peak Value

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At Retirement

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At End of Life

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Savings Rate

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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.

Retirement Playbook

Your personalized retirement readiness score and a tax-optimized withdrawal framework for making your savings last.

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Add your accounts and configuration on the Retirement Tracker tab to see your personalized readiness score.

Tax-Optimized Withdrawal Strategy

In retirement, where you withdraw matters as much as how much. Follow this decision flow each year to minimize taxes and extend your portfolio's lifespan.

?

Do you have qualified medical expenses?

Decision

Before any standard withdrawal, check if you have qualified medical costs. HSA dollars spent on medical expenses are completely tax-free — no other account can match this benefit.

→ Yes: Pay all qualified medical costs from your HSA first. See step below.

→ No / HSA depleted: Skip to the RMD decision.

1

Health Savings Account (HSA)

Triple Tax-Free

The most tax-efficient account in the US tax code. Contributions were deductible, growth is tax-free, and qualified medical withdrawals are tax-free. No other account has all three advantages.

Qualified medical expenses include

Health insurance premiums (Medicare, COBRA)
Deductibles, copays, coinsurance, and prescriptions
Dental, vision, hearing aids, therapy
Long-term care insurance premiums (age-based limits)

After age 65

Can withdraw for any expense — treated like a Traditional IRA (taxable, no penalty)
Still completely tax-free for qualified medical expenses
No Required Minimum Distributions — ever

💡 Stealth IRA strategy: Save all medical receipts indefinitely. Pay bills from other funds now, let your HSA compound tax-free for years, then reimburse yourself — no deadline, fully tax-free.

?

Are you age 73 or older? (RMD year)

Decision

The IRS requires minimum distributions from Traditional IRAs and 401(k)s starting at age 73. These are not optional — failing to take them results in a 25% penalty on the missed amount.

→ Yes: Take your full RMD first. These are taxed as ordinary income — plan other withdrawals around this amount to avoid bracket creep.

💡 Pre-RMD window (ages 59½–72): This is your prime Roth conversion window. Convert Traditional IRA/401(k) funds while your income is lower — before Social Security and RMDs inflate your tax bill for good.

R

Required Minimum Distribution (RMD)

Mandatory

RMDs are calculated annually from your prior December 31 balance using IRS life-expectancy tables. Even if you don't need the cash, you must withdraw it and pay ordinary income tax — the amount counts toward your income for bracket calculations.

Accounts subject to RMDs

Traditional IRA, SEP-IRA, SIMPLE IRA
401(k), 403(b), 457(b)
Inherited IRAs (10-year rule for non-spouse beneficiaries)

Accounts exempt from RMDs

Roth IRA — never has RMDs during the owner's lifetime
HSA — no RMDs ever
Roth 401(k) — exempt from RMDs since 2024 (SECURE 2.0)

💡 QCD strategy: If you're 70½+ and charitably inclined, a Qualified Charitable Distribution (QCD) directly from your IRA counts toward your RMD while being excluded from taxable income — better than donating post-withdrawal.

2

Brokerage Account (Taxable)

Capital Gains

After RMDs, draw from your taxable brokerage next. Long-term capital gains are taxed at 0% for many retirees in lower income brackets — significantly cheaper than ordinary income rates applied to IRA withdrawals.

2024 long-term capital gains tax rates

0% — Taxable income up to $47,025 (single) / $94,050 (married filing jointly)
15% — Up to $518,900 (single) / $583,750 (MFJ)
20% — Above those thresholds

Tax-gain harvesting

If your income (after RMDs and other sources) keeps you in the 0% bracket, deliberately sell appreciated positions — you owe nothing in capital gains tax, and your cost basis resets higher for the future
This is only available to lower-income retirees and is the opposite of tax-loss harvesting

💡 Short-term gains (held <1 year) are taxed as ordinary income. Sell short-term positions only when necessary — prefer assets held over a year.

3

Traditional IRA / 401(k)

Ordinary Income

Every dollar from a Traditional IRA or 401(k) is taxed as ordinary income. Draw strategically — withdraw only up to the top of your current tax bracket, then stop. Avoid large lump sums that push you into higher brackets unnecessarily.

Bracket-filling strategy

Calculate how much room remains in your current tax bracket after RMDs, Social Security, and other income
Withdraw only enough to fill the remaining bracket space
Each dollar you convert to Roth also fills the bracket — coordinate conversions with living withdrawals

Hidden income traps

Social Security taxation: Large IRA withdrawals increase your "combined income," causing more Social Security benefits to become taxable (up to 85%)
Medicare IRMAA: Income spikes can push you into higher Medicare premium tiers — a cliff that costs thousands for a single dollar over the threshold
State taxes: Many states exempt some or all pension/IRA income — check your state's rules

⚠️ Avoid large one-time IRA withdrawals for home repairs, gifts, or emergencies that spike your annual income. Instead, use Roth or brokerage funds for large irregular expenses.

4

Roth IRA

Tax-Free — Last Resort

The Roth IRA is your most powerful long-term asset. It compounds completely tax-free, has no RMDs, and is ideal for heirs. Preserve it as long as possible — every additional year it grows is pure gain that no other account can replicate.

When to use your Roth

When other accounts are depleted
For large one-time expenses that would spike taxable income (Roth withdrawals are tax-free and don't count)
To stay below IRMAA thresholds or minimize Social Security taxation
In high-income years when you're in a high bracket regardless — the tax-free nature offers no additional cost

Roth withdrawal ordering (IRS rules)

Contributions — always out first, always tax-free and penalty-free at any age
Conversions — each tranche follows its own 5-year holding period
Earnings — tax-free only if account is 5+ years old and you're 59½+

💡 Legacy planning: Roth IRAs are among the best assets to leave to heirs. Non-spouse beneficiaries inherit them income-tax-free and have 10 years to take distributions — still tax-free.

Year-Round Tax Optimization

These strategies compound over a 20–30 year retirement. Even small tax savings each year add up significantly over time.

Roth Conversion Window

Between early retirement and age 73, income often drops dramatically. This is your prime window to convert Traditional IRA funds to Roth at low rates — permanently shrinking future RMDs and your tax bill for life.

0% Capital Gains Harvesting

If your total income stays within the 0% long-term capital gains bracket, sell appreciated brokerage positions on purpose. You pay no tax, your cost basis resets higher, and you've eliminated a future taxable gain for free.

Coordinate Social Security

Up to 85% of Social Security benefits become taxable above income thresholds. Roth and HSA withdrawals don't count toward "combined income" — use them strategically to keep more of your Social Security benefits tax-free.

Watch IRMAA Thresholds

Medicare Part B & D premiums surge at income cliffs (IRMAA). A single dollar over the threshold can add thousands in annual premiums. Plan large withdrawals carefully — especially in high-income years from Roth conversions or asset sales.

Qualified Charitable Distributions

Once you're 70½+, you can donate up to $105,000/year directly from your IRA to charity via a QCD. It satisfies your RMD, never appears as taxable income, and avoids the AGI increase that a standard deduction-based donation would cause.

Spousal & Inheritance Planning

When a spouse passes, the survivor shifts to single filer rates — a "widow's tax" that can dramatically increase the tax burden. Roth conversions before this happens are especially valuable. Proper beneficiary designations avoid probate and preserve tax treatment.

For informational purposes only. Not financial advice. Tax laws change — consult a qualified tax advisor for personalized guidance.