University of Phoenix Material

Retirement and Estate Planning Worksheet

Retirement Planning

Step 1: Estimate your retirement income at:

http://www.bankrate.com/calculators/retirement/retirement-plan-income-

calculator.aspx

You will be asked to answer six questions. If you are unsure of what the

fields are, the definitions are below on the same page. There are some

assumptions about how much your investments will earn, inflation rates, and

tax rate; you can edit these to see how they impact the calculation.

. Based on your inputs, what is your estimated monthly retirement income

before tax/inflation?

Based on my inputs my monthly retirement income before tax/inflation

is $6912

Currently I have $38000 in my retirement account. I will contribute

$3000 annually. My current age is 33. My retirement age 65 and I am

predicating 10 years of retirement.

. Based on your inputs, what is your estimated monthly retirement income

after tax/inflation?

Based on my inputs my estimated monthly retirement incomes after tax

inflation is $2684.

Step 2: Determine how your current retirement strategy will provide for

retirement income:

http://www.bankrate.com/calculators/retirement/retirement-plan-

calculator.aspx

You will be asked to answer eight questions. If you are unsure of what the

fields are, the definitions are below on the same page. There are some

assumptions about how much your investments will earn, inflation rates, and

if Social Security income is considered; you can edit these to see how they

impact the calculation.

. Based on your inputs, how much monthly income is your current strategy

estimated to provide?

Based on my inputs my monthly income that my current strategy estimates

to provide is $1,200.

Your plan provides $1,226,832 when you retire. This assumes annual

retirement expenses of $121,879 which is 75% of your last year's

income of $162,505. This includes $0 per year from Social Security.

. Assume that monthly income will not be sufficient. In at least 100

words, what steps can you take now and/or in retirement to live

comfortably in retirement?

Assuming that the monthly income available in my calculations won't be

sufficient, there are few steps I can take to maximize my savings. One

step that I can take now is to save more than I plan to so that I have

more available in the future. I can increase my savings by 3% to 6%

additional each month. Which means, I will have to stop extra spending

like vacation, unnecessary purchases. Another step is opening a CD

with high rate of interest and putting any extra money I have into it.

Another step I can take now or rather before retirement is to find a

better paying job than expected so that my income increases and so

would my annual retirement savings.. Another step I could take after

retirement is considering a housing unit instead of a house or having

an exceeded amount of unneeded space.

Step 3: Calculate how savings can grow

How long will it take you to reach $1 million in savings? Answer the four

questions in this calculator to calculate when you could become a

millionaire:

http://www.igrad.com/schools/universityofphoenix/?TargetURL=%2FResources%2Fm

illionaire-calculator

. How many years will it be before you reach $1 million in savings?

Based on the data I entered, I will be a millionaire in 83 years and 2

months.

. Thinking of what your life might be like in retirement, would $1

million be sufficient to support yourself? (Some things to consider

would be your health, where you live, and how much money you owe.) In

at least 100 words explain why or why not?

Let's be honest, $ million is not sufficient amount to live. Yes, It's

enough to be debt free but not to live a lifetime. I don't think it will be

sufficient enough because one reason is that once I graduate college I'm

estimating that I will owe $45,000 in school loans and they may not even be

paid off by then. Another reason is that even now at 33, I am not getting

any younger. My heath on top with Rheumatoid Arthritis and cost of medical

treatment is not cheap. Health costs are hitting the sky and by the time I

retire. I won't be able to live for much longer on $ 1 million. Another

reason is even now it is expensive to live and in the future the cost of

living is going to go up even more so, by the time I go into retirement I'm

looking at the cost of living being at least twice as

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