Reference no: EM131906624
Retirement Planning
Assumptions / Inputs to your model
Current Salary - $56,000
401K Match - 50% of your contribution up to 6% of your salary
Age at Start -30
Retirement Age – 65 (35 full years of employment
Initial Investment - 4% of your salary
Subsequent investments include 25% of your raise in addition to the 4%
Annual Raises 2-5% (Variable)
Assume an annual growth rate of 6-10% and monthly contributions.
401K Limit is 18,500 in year 1
Assume there is a 50% chance the government will increase the limit by $500 each year
Compute the following for 50 simulations (Average)
1. How much money will you have saved for your retirement at age 65?
2. If you want to draw 70% of your final pay check each year, how long will your money last?