Based off of the CNN retirement calculator I tried and today’s dollar value, I need to have $490,309 saved by the age of 65 which takes into account if I started saving at the age of 25, have no savings, and have a salary of $30,000. If it was based on the 2056’s dollar value, that would be $1.2 million which is due to inflation. Actually, an article on US News states that one of the biggest mistakes people make when planning for retirement is not to consider inflation (LaPonsie). Even the Retirement Caculator took into account inflation at a rate of 2.3% with income growth of 1.5% and that my annual rate of return would be 6% (Retirement Calculator). Seeing the difference between today’s dollar and 2056’s dollar, leaves me with the impression that our dollar values are very unpredictable. I really would have to start saving early if I want to have enough for retirement.
Personally, I would like to start investing now so I
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If I want to meet my goals, I have about 40 to 42 years to save, and I will need to save 12% of my income. If it is possible, I will save the 12 %, but it is likely that I will not be able to so I will start at six percent and gradually increase. In the meantime, I would hope to have started a Roth IRA around the age of 25 to get the most out of my investment early. Although the regular IRA allows for people to use their contributions as tax deductions, people use their “after-tax” money to make investments which will later be tax-free after retirement (Steiner). Besides being be tax-free income during my retirement, the money invested in my Roth IRA fund will be a great “estate-planning tool” since I can leave my family tax-free income as well (Steiner). I will have to pay on taxes now,
It is very hard to predict the future, as one is unable to know for certain what tax rates will be imposed upon individuals as time goes on. However, from my research, it seems that it is a safer decision to assume that tax rates will increase over the years, and with this, the Roth IRA seems to be the safest option for young individuals, with the most benefit, given AGI requirements are met. However, if you are not able to contribute to a Roth IRA at a young age due to income, the option to convert to a Roth IRA should be investigated. There is no absolute answer to all retirement questions—every avenue is relative to other parts of the equation—but the end result of post-retirement stability is likely the common goal for us all.
When I walked across the stage to get my diploma, the term 401k meant absolutely nothing to me. I was more concerned about getting a job than how I was going to retire. When I got hired, I was just happy to have a job with a salary. I was fortunate enough to get a great paying job, but also one that came with benefits. One of those benefits was a 401k plan.
III. (Reveal Topic) You simply cannot rely on Social Security to support you in your "Golden Years". You can never start too early to save for your retirement. In fact, the earlier, the better.
Despite the retirement income crisis, Social Security should be expanded, not reduced. In Arthur Delaney’s article on the Huffington Post, Senator Bernie Sanders stated, “With the middle class struggling and more people living in poverty than ever before, we cannot afford to make life even more difficult for seniors.” A push to adopt CPI-E, rather than a switch to a “chained” consumer price index that cuts retiree benefits, would m...
Every person has an American Dream they want to pursue, achieve and live. Many people write down goals for themselves in order to get to their dream. Those never ending goals can range from academic to personal. As of today, I am living my dream. My American Dream is to become a nurse, travel to many places, have a family, and get more involved with God.
“The American Dream is that dream of land in which should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement,” (Adams,“The Epic American Dream”, 1931, pg 214). Reading this I had to translate this quote for myself. I got that the American dream is that every American citizen can be successful and prosper in this great nation if he/she puts in the hard work, possesses determination, and the required skill. Such ideal, I think carries a lot of weight and promise to those who take advantage of the opportunity. However this dream is slowing dying.
There are many different ways to save money and there are different things to save for. A savings plan for an immediate want is apparently different than a savings strategy for retirement. One may choose to select stocks, bonds, or mutual funds for a savings strategy, however, my personal choice is to invest in bonds first, then mutual funds.
In Dave Ramsey’s book titled The Total Money Makeover, he outlines seven baby steps to achieve financial freedom. They are as follows: first, build an emergency fund. Second, Pay off all debt except for your mortgage. Third, save enough to cover 3 to 6 months of living expenses. Fourth, invest for retirement. Firth, save for your children’s college fund. Sixth, pay off mortgage early. Finally the seventh step, build wealth and give. I am going to discuss the five steps that I thought were the most important.
When decisions bases on a consumers finances have following consequences further than the near future, then an individuals' success economically could depend on the ability they have to foresee the upcoming rate of inflation. according to statistics, higher expectations for inflation were reported by females who were poorer, they were single and they were less educated. More specifically, higher expectations for inflation were reported by people who focused more-so with how they can cover future purchases and expenses and the prices they will pay, and by ones who have lower knowledge on financial literacy.
Not to mention other financial decisions. Strategies to maintain purchasing power due to the effects of inflation, preparing for incapacity and minimizing taxes are all important in the post-retirement planning process. Make sure that your parents receive adequate advice from a qualified financial advisor, estate planning / elder care attorney and CPA. Ideally, your parent's advisor should be able to provide them with the appropriate references for their situation. There are a numerous of re-sources
I am currently eighteen years old. I am working on setting up all my financial things so that I am independent and can rely on myself for what I need and not have to worry about having my parents approving of things and being responsible for what I choose to do. I am going to take out a small loan soon and work on building up my credit history. I am also planning on transferring all my things like my car and phone to my name. This summer I am going to get a full time job as a CNA and save up some money for next year college. I plan on hopefully going to the University of Minnesota Twin Cities for my bachelors degree in nursing. As I attend college I plan on staying employed as a CNA and working as much as possible so that I can afford to pay my tuition that I will basically be on my own with. During my college years I plan to get a few small credit cards just in case and also to keep my credit good. After I graduate, I would like to move somewhere south or west and work as a Psych RN. While I work as a RN, I may go back to school and complete my masters program to become a NP (nurse practitioner). I will be receiving my insurance through whatever company I am working at because...
Retirement is one of the most important crossroads we face in life. It involves a fundamental change in lifestyle, one that calls for a totally new outlook on how we approach each day. All our lives we have been conditioned to think in terms of saving for our retirement years. Society has created this mystique about this time in our lives when we magically transform into different people with different lives when really we are the same people with different day to day lives. According to Medina, (2012) planning for retirement isn’t a "walk in the park" because for many people, debts are high while income is low.
Personal financial planning eventually leads to secured retirement years; this is the purpose to plan for the future. With a volatile and erratic economy, and social security benefits undetermined in regards to having enough money to comfortably survive after retirement is critical. There is no magic ball to tell us what the coming years will bring; this is why it is up to each individual to have their own financial lives under control. Having a concrete financial plan now will secure an increased comfortable future.
Retirement planning is a way to insure that you will have enough income to live comfortably when you retire. Most people will be retired 25 years or more, and careful planning is the key to successful retirement. Why would you want to have bill pressures and mortgages when all you really want to do is relax, or follow that dream of traveling the country in an RV?
The importance of saving for retirement is all based on how the individual wants their lifestyle to be after their career. The sooner they begin saving and investing their money, the more profound lifestyle they are bound to live. There is a saving plan called the 401(k) that lets employees have a percentage of their net pay withdrawn before taxes. This helps significantly if they are planning to retire earlier on in their lifetime because it can also lower the amount of taxes owed each take which essentially is more money in your pocket every paycheck. America as a whole downplays the significance of saving for retirement until they get of a certain age and they are too drained to get up for work and work a full shift as they would when they were of a younger age. Typically, when living in retirement you are free to travel and reach goals you were not able to achieve because life and work got in the way. Enjoying your retirement is the goal, not to make your retirement a burden to you or their