As the babyboomers prepare to retire, the amount of social security is slowly decreasing for the younger generation. Now, younger generations can not rely on social security alone to cover them after retiring. As more information for retirement plans are made available, I realized that investing in a plan now while I am young will better prepare me for my future. Through various resources, like financial planning books and articles, I created a investment plan that fits my lifestyle and will not leave me dependent on social security.
Retirement Plan
To determine the amount of money I will need for retirement, I used the CNN money calculator with references from Dave Ramsey to calculate savings for each month. If I am working as a TESL (Teaching English as Second Language) teacher at the age of 25, my annual income can range from $21,600 to $32,400. For this project, I used an annual income of $30,000 and based off of saving 15% of my income, I will need $467,351 with an income growing 3.8% each year due to inflation and salary growth (Retirement). After the age of 65, I will have …show more content…
Creating detailed monthly budgets plans and lowering the amounts of spending on unnecessary items than needs will help my investment grow before the age of 65. My current savings plan did not account for retirement but since I made a simplified retirement plan, I know I can make adjustments by paying off debts first and using the Step Down Principle when spending. During this time, I will lower the amount I travel and shop, especially since I want to buy at least five acres of land to build a little home before retiring. Afterwards, I will take the time out to look through all of my estate and plan out who will I give my items to, especially if I have a family. I will probably hire a financial planner to help with the process, but until then. I will plan out the rest of my retirement until
Retirement Plan
To determine the amount of money I will need for retirement, I used the CNN money calculator with references from Dave Ramsey to calculate savings for each month. If I am working as a TESL (Teaching English as Second Language) teacher at the age of 25, my annual income can range from $21,600 to $32,400. For this project, I used an annual income of $30,000 and based off of saving 15% of my income, I will need $467,351 with an income growing 3.8% each year due to inflation and salary growth (Retirement). After the age of 65, I will have …show more content…
Creating detailed monthly budgets plans and lowering the amounts of spending on unnecessary items than needs will help my investment grow before the age of 65. My current savings plan did not account for retirement but since I made a simplified retirement plan, I know I can make adjustments by paying off debts first and using the Step Down Principle when spending. During this time, I will lower the amount I travel and shop, especially since I want to buy at least five acres of land to build a little home before retiring. Afterwards, I will take the time out to look through all of my estate and plan out who will I give my items to, especially if I have a family. I will probably hire a financial planner to help with the process, but until then. I will plan out the rest of my retirement until