The Salary And Cnn 's Retirement Need Calculator Essay example

1400 Words Feb 23rd, 2016 6 Pages
At age 25, with my current plans to go to medical school for oncology, I will still be in college with 1 more year of graduate school, 1 year of internship, 4 years of residency, and 2 years of fellowship. At this point in my life, I will still be accumulating debt, have very little, if any, income, and have a great deal of expenses to keep in mind. The current median starting salaries for oncologist is $227,000 per year, which I will not make until I am 32. Using this salary and CNN’s retirement need calculator, I will need approximately $5.2 million dollars at the US Dollar’s current value to retire at the age of 65 based on this median salary.

Based on my income at age 25, I would be eligible to open a Roth IRA and contribute up to $5,500 dollars every year, but as soon as I am employed at a job that pays above $132,000, I will no longer be eligible to contribute money to that account. At the same time, I am eligible for a Traditional IRA, which does not have an income limit. Contributions to this account would initially be tax deductible, but would be subject to taxation upon withdrawal. This statement is true as long as I make less than $71,000, which at the age of 35 will not be true, so the only benefit of this type of retirement plan is that the money I put in grows without being taxed, but is then taxed when I take it out, and since the tax rate of a retiring individual is typically lower than an employed individual, I will theoretically be saving money.…

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