Retirement Plan Essay
Step 1: I am 21 years old and I plan of retiring at the age of 65. I believe I will be alive for 32 years in my retirement.
Step 2: With the way things are looking I estimate that I will need $44,000 a year in retirement income. I plan on investing in retirement so I am going to use a 7% interest rate.
Step 3: I am not going to include Social Security in my analysis because by the time I will retire I do not believe that Social Security will still exist. Therefore, my answer for Step 3 is 0.
Step 4: The job I currently have does not offer a DB pension; therefore, my answer for Step 4 is 0.
Step 5: I have a Traditional IRA, it is currently worth $11,935.35. My IRA is invested …show more content…
I need to have my money in some sort of investment and what is a better investment than myself. Because I have been able to invest at such a young age I need to keep adding money to it that way I can have a nice amount of money to retire with. I is always good to save because it is hard to know what is going to happen in the future. And if I decided or need to retire earlier than I planned I can.
What impact will your personal retirement planning have on your immediate family? Right now I am the only one of my sibling who was money set aside for their retirement. So my sibling constantly joke that I am going to have to take care of them when we are older. But if I have a family of my own this money will make sure that I am taken care of and my children do not have to worry about me.
What impact will your personal retirement planning have on society? I feel like my personal retirement plan will have a positive effect on society. This is because I am not relying on government assistance. My retirement will be paid for by me.
What impact would there be on the economy if every American had and implemented a retirement plan? I think that it would have positive effect on the economy. If everyone in America had and implemented a retirement plan we would not need government assistant programs like Social Security. But you have to be educated and knowledgeable about your money and ways you can save