Long Term Financial Planning

Often times we focus on the little things when it comes to financial planning. Money markets, mutual funds, forex, stocks, bonds, CD's, real estate, IRAs, 401k's - it can get to be too much, too fast. Online tools such as calculators used to compare mortgages, balance loans rates, etc. are also within a few clicks away, making us get caught up with the minor details and lose view of the big picture.

In the end getting to your crossover point is not about the details, it's about the discipline. Spend less than you earn and be patient. Use the calculator found below to determine when you'll be financially free.

Calculate Your Crossover Point

Complete the required fields below and jump on the road to retirement.
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How far out should we take these calculations, friend?
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Your annual income goes here. The results will probably be more accurate if you only include your take-home pay.
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As a percentage, how much of your income do you spend each year?
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You're such hard worker. What's your average annual pay increase?
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Give us your best Alan Greenspan and predict inflation.
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How much do you plan to earn on your investments Mr. Buffet?
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Your current investments and savings go here.
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- disclaimer -

Your crossover point is the point when your annual investment earnings surpass your annual spending. In the chart below, this occurs at age 52 (when the blue line overtakes the red line).

It's important to have a balanced portfolio that includes many different types of funds like IRA's, 401k's, money markets, mutual funds, high yield savings, real estate, stocks, and bonds.