Retirement Planning with AI.

Retirement accounts explained simply.

Retirement accounts are just containers for your money with special tax treatment. The money inside them can be invested in various ways. Here are the main types:

401(k) / 403(b): Employer-sponsored accounts. Contributions come from your paycheck before taxes. Many employers match a percentage of your contributions — that's free money. There are annual contribution limits set by the IRS.

Traditional IRA: Individual retirement account. Contributions may be tax-deductible. You pay taxes when you withdraw in retirement. Available to anyone with earned income, with income-based limits on deductibility.

Roth IRA: Contributions are made with after-tax money. The advantage: withdrawals in retirement are generally tax-free. Great if you expect to be in a higher tax bracket later. Income limits apply to contributions.

SEP IRA / Solo 401(k): Designed for self-employed individuals and small business owners. Higher contribution limits than traditional or Roth IRAs.

Ask AI to explain the differences using your specific income and situation (without sharing sensitive info). It can clarify contribution limits, income phase-outs, and tax implications in plain language.

How much do you actually need?

The common rule of thumb is that you'll need 70-80% of your pre-retirement income each year in retirement. But rules of thumb are just starting points. AI can help you build a more realistic estimate.

Estimating expenses: Ask AI to help you project your retirement expenses. Some costs decrease (commuting, work clothes) and some increase (healthcare, leisure). Walk through each category.

The 4% rule: A general guideline suggesting you can withdraw about 4% of your retirement savings per year without running out over a 30-year retirement. So if you need $40,000/year, you'd need about $1,000,000 saved. AI can model this with different assumptions.

Social Security: If you're eligible, Social Security provides a foundation. But it typically covers only a portion of retirement expenses. AI can explain how benefits are estimated, though actual amounts depend on your work history.

Inflation: $40,000 today won't buy $40,000 worth of goods in 30 years. AI can adjust your retirement needs for inflation, showing you the future-dollar amount you'll actually need.