J-Lay

"Should've Been A Cowboy"

Monday, October 03, 2005

How Much Do You Need?

to date only 33% of american adults have tried to figure out how much money they will need to retire. in 2001 they projected that in 2005 only 5% of those who turned 65 will have enough money to last them throughout retirement. of the remaining 95%, 54% will have to continue to work and the other 41% will be broke and living off of what little social security the receive. it is my company's crusade to combat these statistics and help families achieve financial independence. to figure out how much money you need to retire go to the website below.

http://www.banksite.com/calc/retire

there are five fields to input information into. here is a brief description of what to put in each field.

Annual income required (today's dollars) - this is what you think you could live off of if you were to retire today with minimal debt.

Number of years until retirement - subtract your current age from the age you want to retire.

Number of years required after retirement - assume you will live to age 87, better to be safe than sorry.

Annual inflation - 4 is a good number to put here.

Annual yield on balance (%) (fixed rate) - 10 is a good conservative number.

after you click calculate you will be taken to a page with a rather large number, but don't fear the number. this is your financial independence number (FIN). if you want to learn how to reach your FIN you know where to find me. on a scale from 1 to 10 how would you rate your desire to be financially independent?

6 Comments:

At 10/03/2005 12:37 PM, Blogger JMH said...

Question...assuming medicine improves quality and longevity of life in the future, should I account for a later retirement age? And what would you say is the annual income of a masked vigilante...I know those super-powers are almost here.

 
At 10/03/2005 1:03 PM, Blogger j-lay said...

answer...quit thinking of retirement as an age. start thinking of it as a certain amount of money because whether you want to retire at 35 or 75 you will need enough money to do it. medicine does effect your longevity therefore when planning out your retirement assume you will live longer than doctors project. better safe than sorry, right? at this point in time a 25 year old male is expected to live to 81 and female 83. that is why i suggest imputing 87 into the calculation.

 
At 10/03/2005 3:16 PM, Blogger shannon said...

most boringest blog ever.

love,
vxqxhah barrett

 
At 10/03/2005 7:40 PM, Blogger j-lay said...

maybe, but it's still important.

 
At 10/04/2005 11:47 AM, Anonymous ash said...

thanks, by the way i'm playing softball here for a league thing. i'll let you know how it goes.

 
At 10/04/2005 9:20 PM, Blogger i am cam said...

i agree with shannon. i saw the statistics and i pretty much stopped reading.
sorry.

 

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