Essay on Retirement Plan For Retirement Plans

702 Words Apr 18th, 2016 3 Pages
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 $532,635 based off of saving 85% of my income in total (Retirement). However, this estimate is dependent on whether I will retire in the United States or out-of-country; it could be more or less.
How and When To Invest
Since I am still in college and do not have a job, I hope to start investing when I turn 23 ( I am 21 now) and possibly retire at 65 or 67. This will leave me with about 42-44 years…

Related Documents