Retirement Planning: Estimating Income and Savings, Slides of Management Fundamentals

Download Retirement Planning: Estimating Income and Savings and more Slides Management Fundamentals in PDF only on Docsity! Step 3: Estimate Your Income Available at Retirement. ¢ Estimate your Social Security benefits. ¢ Calculate your employer-provided pension. ¢ Estimate any other windfall income that could be used towards retirement, such as an inheritance from your gozillionaire Uncle Morty. Docsity.com Step 4: Calculate the Annual Inflation-Adjusted Shortfall. * Compare the difference between your needs and your retirement income. ¢ Take inflation into account when calculating the time value of money. ¢ Use this formula: FV = PV(FVIF joe nye) ® Docsity.com Step 6: Determine How Much You Must Save Annually. * Your answer in Step 5 is the total dollar amount you need the day you retire. ¢ Determine your annual savings goal by using a future value of an annuity equation. ¢ Use the formula FV = PMT(FVIFA ig ve) ® Docsity.com Step 6: Determine How Much You Must Save Annually. ¢ Note: Always remember to adjust for inflation in each step or you will fall short of your goal. Docsity.com Step 7: Put the Plan Into Play and Save. ¢ Save, save, save!! ¢ Determine the combination of retirement plans and products that are best for you. Ss PReterement Docsity.com