Complete the following 6 steps to determine your retirement needs (financial). Please show your work and logic at each step. This entire
project can be completed using the information in Chapters 12 & 13 of the
textbook.
Determine what age you would like to retire (Minimum of 50 years of age)
Determine how much money you will need annually after you retire
(Prepare an approximate budget using today's cost)
Assuming a 3% inflation rate per year from now till the day you retire, how
much will you need per year at retirement?
Assuming you will live after retirement for 30 years and get a 6% annual
rate of return, how much money do you need at retirement? (The day you
retire)
Considering what you currently have saved for retirement (If none start with
$2,000), how much will you now need at retirement? (Choose your own
rate) This will reduce the amount calculated in #4
How much money will you need to save per year from now till retirement to
reach your retirement goal, given a 9% annual return?
Assuming you pass 10 years earlier than expected, how much money will be
left to pass on to your loved ones?