CALCULATOR AVAILABLE FOR:
Make sure you join The Practice Academy to get access to calculators like this!
Make sure you talk to a professional for any retirement planning, this planner is for personal use aka if you screw up your retirement it’s not on us 🙂
The other day I was watching a Tiktok and a financial planner type guy said, “Here’s why if you have $2m you can retire right away.” Now I think a lot depends on this, that’s why we made a full Retirement Calculator with our own numbers. But it got me thinking, how do I figure out when I’ll hit certain numbers with my savings? I looked for some pre-made calculators and couldn’t find a simple one. So I made this one!
It’s super simple, if you have say $150k in savings and want to know when it’ll hit $500k at 10% return when will that be?
Compound Growth Calculator
See when your retirement savings hit your goal.
Interest compounds annually. No additional contributions.
How to have less anxiety in planning your retirement as a private practice small business owner?
The calculator above will help you play with all these numbers and give some recommendations to help you. We’re only offering this to the public for a short time, then it will be exclusively within our membership community The Practice Academy.
How to Use the Compund Interest Calculator for Therapists
Retirement planning can feel overwhelming, especially when you’re self-employed and your income may depend on things like your session rate, number of sessions per week, time off, taxes, and overhead.
This compound interest planner is designed to help you answer a simple question:
If I do nothing more, when will I reach my financial goal?
Here’s how to walk through the calculator.
Step 1: How much do you currently have saved?
For this step, we’re looking at the amount you have invested. This is not including your emergency fund. Typically financial advisors want you to have that in easy to access accounts, like a high yield savings account. What we’re talking about is invested money, this could be in a brokerage HSA, 401k, IRA, or just whole market index fund.
Step 2: What is your goal for that savings?
Next, we want to ask:
What am I saving for?
As a therapist who owns your own business, retirement is the most common goal, but maybe you just want to use the calculators to know when you’ll have enough to buy a building for your private practice, purchase a house, or just want to know when you’ll hit the next milestone.
Step 3: Set Your Average Interest Rate
Next, we’re going to set your average interest rate. Typically a whole market index fund gets 8-12% per year over 10 year periods of time. Some years in the market are up, some are down. If you invest in basic index funds like Vanguard offers (not a sponsor), you save the 1-2% a financial adviser takes.
Step 4: Enter Your Age
Next, enter your current age and the calculator will determine exactly how long it should take you to reach your savings goal.
No matter what you’re saving for, this compound interest calculator will help you have a general forecast of what’s to come next.
