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.
Annual Income (today) you wish to retire on: $_______________________ (divide by .08)
(nest egg needed) equals: $_______________________
To acheive that nest egg, you will save at 12% netting 8% after inflation. So, we will target that nest egg using
Nest Egg Needed 8% Factor
Monthly Savings Needed