I like spending a few minutes (but not much more) plugging in hypothetical numbers into interactive calculators like this retirement income calculator (Java required). This calculator displays how much monthly retirement income you can expect with assumptions about market return, tax bracket, and contributions.

This morning, I spent a few seconds exploring a few scenarios. It’s interesting that while the market rate of return is an important factor, changes in that variable don’t affect the outcome as much as similar changes in the dollar amount of annual contributions.

This year, I’m contributing the maximum to my Roth IRA and 16% of my day-job income to my 401(k). I’ll also contribute some portion to a tax-deferred SEP IRA, but I’m not sure how much. I still have more than 30 years to go until the standard retirement age, so the more I pile the contributions on now, the less I’ll have to worry in the future… if I make it that long.

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Flexo, the owner and creator of Consumerism Commentary, has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow him on Twitter.

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