1. P REPARING FOR A W ONDERFUL R ETIREMENT By Courtney Courter Email me at courtneymarie@comcast.netcourtneymarie@comcast.net

2. O VERVIEW In order to have an enjoyable retirement without financial stress it is vital to prepare early. This presentation will show you why this is so important through the use of personal examples.

3. F ACTORS TO C ONSIDER At what age do you start your new career? How many years will you work until retirement? What average inflation rate do you expect over your working career? What savings rate do you expect to get on your money saved? How many years beyond retirement do you expect to live? What is your starting salary equivalent value at the time of your retirement? How much do you have to save annually (until retirement) such that the amount saved at the time of retirement will provide an annuity for the number of years you expect to live beyond retirement (at which time the amount saved is drawn down to zero)?

4. A T W HAT AGE WILL I START MY C AREER ? Begin College: 19 Graduate College: (19+4) = 23 Graduate Medical School: (23 + 4) = 27 Start Career: 27 Average online: 25 - 30 Career: Pediatrician Source: http://www.ruralmedicaleducation.org/age_divisions.htmhttp://www.ruralmedicaleducation.org/age_divisions.htm

5. A T WHAT AGE WILL I RETIRE Average Retirement of physician: >50 I hope to retire at age 66 Source: http://pediatrics.aappublications.org/cgi/content/abstract/125/1/ 158 http://pediatrics.aappublications.org/cgi/content/abstract/125/1/ 158

6. W ORKING Y EARS 66 - 27=39

7. C ONSIDER What average inflation rate do you expect over your working career? 2.15% What savings rate do you expect to get on your money saved? 5.5% How many years beyond retirement do you expect to live? 18 What is your starting salary equivalent value at the time of your retirement? $100,000 Sources: InflationInflation - Savings rate - Life Expectancy - Stating SalarySavings rateLife ExpectancyStating Salary

8. MINIMUM AMOUNT YOU ARE WILLING TO RETIRE ON Salary equivalent = (Starting Salary)*(1 + i) n “i” = inflation rate “n” = number of years until retirement. (target annual retirement income) (100,000)*(1 + 0.0215) 39 = $229,243.20

9. C ALCULATING F UTURE V ALUE “pymnt” = amount you save each year (the same amount for each year) “i” = interest rate you expect to get for your money over the entire saving period (your career) “n” = the number of years you will work (229,243.20)*((1 + 0.055) 39 – 1 / 0.055) =29,466,033.09 Source: RateRate

10. C ALCULATING A NNUITY “FV” = Future value “i” = interest rate you expect to get for your money over the entire saving period (your career) “k” = the number of years you expect to live beyond 70 29,466,033.09*((0.055)/(1-(1+0.055)) -14 ) =$120,141.80

11. R ESULTS – S ALARY AND SAVINGS The sooner you start saving the less you will need to save to meet your annuity. If you wait long you will need to save much more

12. R ESULTS – P ERCENT S AVINGS The percent of your salary you need to save increases the longer you wait to start saving

13. W HY IS IT SO I MPORTANT TO S TART S AVING N OW ? You want to make the most of your retirement If you save early you will have money to travel when you retire You will have money to go out to eat and vacation

14. M AINTAIN S TABILITY If you save early than you will be able to have a stable retirement income. You will not be burdened with trying to make ends meet Plan ahead incase of economy problems If you plan ahead you will not have to be anxious about your retirement

15. Save Early Retire Early

16. S OURCES http://www.ruralmedicaleducation.org/age_divisio ns.htm https://pooledmoneyinvestmentboard.com/Monthly_ Rate_Comparison.pdf http://www.westegg.com/inflation/ http://www.bankrate.com/calculators.aspx http://en.wikipedia.org/wiki/List_of_countries_by_life _expectancy http://pediatrics.about.com/cs/pediatriccareers/a/pe di_interview_2.htm http://pediatrics.aappublications.org/cgi/content/a bstract/125/1/158