Planning a Second Career or Retire in Style? By Joe Milchling

This presentation will show you why it’s important to start saving for your retirement as soon as possible We will also answer important questions, such as: What are my retirement dreams? How much will it cost me to live during retirement? How do I invest for retirement? How long do I plan to live after I retire? How much should I commit to save monthly to reach financial security? Will I be able to live on Social Security?

Your Retirement Plan Lets assume that you just got a job, and your starting salary is $40,000, as an entry- level Accountant. Then We’ll say that you save $3800p/yr for your retirement vehicle. Then we’ll assume that the rate of inflation will be an average of 3.43% from age 23 until age 65 or the year We will use an average return on investment of 8%

Then we will say that avg. male life expectancy with an avg. diet and minimal exercise will have a life expectancy of This means that you would need to plan to have enough income to carry you for the next yrs assuming an age 65 retirement. We will use an IRA and assume no Social Security or contributions made by an employer Life Expectancy and Income you can count on

Can you rely on Social Security? The Facts are: You cannot retire comfortably on Social security and be able to do things that you dream about all your life The most important thing is that how do you know there is going to be any money in SS fund, given our economy’s current position? The bottom line is that you want to have your own money, and if you don’t plan, your only hurting yourself, and your family.

What does inflation mean for you? Well the most important thing for you to understand about inflation is that, as the inflation rate rises, it makes the value of your money go down. Meaning that you will need more money to buy the same things as today. In a nutshell, it decreases the purchasing power of your dollar.

Value of your starting Salary at Retirement Ok, your starting salary was $40,000. By taking that amount and using the Future Value function formula, we will calculate the answer to this. $40,000=starting salary 3.43% representing the historical avg. inflation rate since 1914 as per the Bureau of Labor. $40,000*3.43%=