2000 words REFLECTION PAPER OVERVIEW based on worksheets and assignment that already have been done & letter of last instruction

Retirement needs worksheet Instructions:

Use the calculator at https://www.calcxml.com/calculators/retirement-calculator

Calculator Settings:

1. Under Current annual income, use salary projections for your career after graduation, not your current student income.

2. Enter the other fields (Current retirement savings, Desired retirement age, Number of years in retirement, etc), using your own situation.

3. Click Next

4. In the assumptions tab a. Expected Inflation = 3% , b. Replacement income at retirement = 90%, c. Pre-retirement invest return = 8% d. Post-retirement invest return = 6%

5. Click Next

6. Select yes for Social Security and your marital status. Leave the Social Security amount override

= 0. (The calculator will determine your SS retirement benefit, based on your income).

7. Click Calculate and scroll down to look at the results

8. Save PDF report (scroll down, “PDF report button).

9. Scroll to top and change the SS override to $1000 (this is to simulate the possibility of reduced benefits when you get to retirement). Calculate and save PDF again. (This PDF report will be attached to your end of term paper.)

Questions: What is your necessary savings rate, with full SS and reduced SS? The saving rate for full SS is going to be 1%, and for the reduced SS is going to be 0.

How much do you need to save each month, with full SS and reduced SS? I need to save $103with full SS, and I need to save nothing with reduced SS.

What is the total amount you need to save for retirement, with full SS and reduced SS?

The total amount That I need to save for retirement with full SS is going to be $8,623, and $0 with the reduced SS.

What happens if you change your retirement spending to 100%? (Click on “Edit” and change the Income Replacement entry to 100% and run calculator.) What happens if you change it to 80%

If the retirement spending is 100%, the retirement account at age 85 is going to be reduced. However, when I change it to 80%, the retirement account at age 85 is going to be increase.

What happens if you put your pre-retirement investment in a savings account paying 2% vs a investment portfolio returning 8%?

If the pre-retirement investment in saving account paying 2% instate of 8%, the retirement account at age 85 is going to be reduced.