Welcome to Proverbs Women

Monthly Retirement Planning

Home | Message Boards | Chat | Weekly Devotional | Faith Page | Favorite Sites | PG/Parenting

Monthly Retirement Planning

In order to retire with some security you must aim at something. Too many people use the READY-FIRE-AIM approach to retirement planning. Your assignment is to determine how much per month you should be saving at 12% interest in order to retire at 65 years old wiht what you need.

If we are saving at 12% adn inflation is at 4%, then we are moving ahead of inflation at a net of 8% per year. If you invest your nest egg at retirement at 12% and want to break even with 4% inflation, you will be living on 8% income.

Step One:

Annual Income (today) you wish to retire on: $_______________________ (divide by .08)

(nest egg needed) equals: $_______________________


Step Two:

To acheive that nest egg, you will save at 12% netting 8% after inflation. So, we will target that nest egg using 8%.

______________          X___________         =            ____________________

Nest Egg Needed              8% Factor                             Monthly Savings Needed

Note: Be sure to try one or two examples if you wait 5 or 10 years to start.

All glory, honor and praise to Jesus Christ our Lord.
Serving the Lord together since Dec. 2002!!