Retiring Comfortably: A 7-Step Guide to Planning for Retirement, Slides of Fundamentals of E-Commerce

Download Retiring Comfortably: A 7-Step Guide to Planning for Retirement and more Slides Fundamentals of E-Commerce in PDF only on Docsity! Plan Now, Retire Later -- The Steps to Success • Step 1: Set goals. • Step 2: Estimate how much you’ll need to meet your goals. • Step 3: Estimate your income available at retirement. • Step 4: Calculate the annual inflation-adjusted shortfall. Docsity.com Plan Now, Retire Later -- The Steps to Success (cont’d) • Step 5: Calculate the funds needed at retirement to cover this shortfall over your entire retirement. • Step 6: Determine how much you must save annually between now and retirement. • Step 7: Put the plan into play and save. Docsity.com 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 i%, n yr) Docsity.com Step 4: Calculate the Annual Inflation-Adjusted Shortfall. • If you fall short, start saving now -- remember Axiom 2: The Time Value of Money. • If you exceed your projected need -- protect yourself against all contingencies. Docsity.com