As a Sacramento Financial Advisor I get to play with a lot of Retirement Income Calculators. There are three mistakes commonly made when using these calculators. Some times the mistakes are made because the calculator does not have enough of an in-depth data input. By far the biggest mistakes made,however, are when the client does not fully grasp what a retirement income calculation entails.

There are three major mistakes commonly made in retirement income calculations. These three mistakes are 1) not estimating the impact taxes have on future income, 2) not taking into account home maintenance costs and 3) not deducting from Social Security income the cost of MedicareParts B and D coverage and the costs of Medigap coverage. (more…)