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Personal finance project day 4

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Chris Jocham

This document discusses estimating retirement needs through an online retirement calculator. It prompts the user to enter their current age, estimated life expectancy, and varying levels of annual retirement contributions and retirement ages to see the resulting portfolio values. The user is asked to consider how starting to save later, increasing contributions, and retiring at different ages impacts the projected retirement portfolio total. It encourages early and frequent saving to balance lifetime expenses.

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Personal Finance Project – Day 4 Activity 6: Estimating Your Retirement Needs In the previous activities, you developed a picture of your lifetime income and expenditures. By now, you're probably aware how important it is to begin saving for your retirement. How much will you need to save? When should you begin saving? Go to http://money.msn.com/retirement/retirement-calculator.aspx Fill in your current age and estimated life expectancy. Are you planning on saving enough to pay for your retirement? Try varying levels of annual contributions, retirement age, and your current age and record the resulting portfolio values. Be truthful about how much you have in savings today. ANSWER – provide specific numbers: 1. What happens to your IRA portfolio value when you increase your annual contribution to a retirement fund? 2. What happens when you change your current age to indicate that you are older and are starting to save later? 3. What happens when you increase your retirement age? Enter the value of your retirement portfolio on your timeline at the estimated time of retirement. This exercise will help you put your life into perspective and see how your lifetime budget might be expected to play out. Think about and respond to the following questions: 1. When will you be able to start to save for retirement? 2. How will you pay for your children’s college education or the new car you want so badly? Hopefully, you will see that you have to make choices over their entire lifetime and not just today. Remember to save early and save often! 3. How do you fit all of your life on the timeline and make it balance?

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Personal finance project day 4

  • 1. Personal Finance Project – Day 4 Activity 6: Estimating Your Retirement Needs In the previous activities, you developed a picture of your lifetime income and expenditures. By now, you're probably aware how important it is to begin saving for your retirement. How much will you need to save? When should you begin saving? Go to http://money.msn.com/retirement/retirement-calculator.aspx Fill in your current age and estimated life expectancy. Are you planning on saving enough to pay for your retirement? Try varying levels of annual contributions, retirement age, and your current age and record the resulting portfolio values. Be truthful about how much you have in savings today. ANSWER – provide specific numbers: 1. What happens to your IRA portfolio value when you increase your annual contribution to a retirement fund? 2. What happens when you change your current age to indicate that you are older and are starting to save later? 3. What happens when you increase your retirement age? Enter the value of your retirement portfolio on your timeline at the estimated time of retirement. This exercise will help you put your life into perspective and see how your lifetime budget might be expected to play out. Think about and respond to the following questions: 1. When will you be able to start to save for retirement? 2. How will you pay for your children’s college education or the new car you want so badly? Hopefully, you will see that you have to make choices over their entire lifetime and not just today. Remember to save early and save often! 3. How do you fit all of your life on the timeline and make it balance?