Compensation (human resources management)

Budget Rule

Age	Salary	401k Employee Contribution	401k Company Match	Total Savings		Invest Return	Retirement Spending	Total		Inflactor	Inflation Adjusted Total
42	$ 42,000.00	$ 1,470.00	$ 1,470.00	$ 34,940.00		$ 2,795.20	$ - 0	$ 37,735.20		1.00	$ 37,735.20		Starting Salary	42000		Average SMLR wage (as of 2020) is $58K; Average worker wage (as of 2020) is 42K
43	$ 43,470.00	$ 1,521.45	$ 1,521.45	$ 40,778.10		$ 3,262.25	$ - 0	$ 44,040.35		1.03	$ 42,757.62		Raise Rate	3.50%		Average raise rate is about 3.5% (remember Merit Pay)
44	$ 44,991.45	$ 1,574.70	$ 1,574.70	$ 47,189.75		$ 3,775.18	$ - 0	$ 50,964.93		1.06	$ 48,039.33		Inflation Rate	3.00%		Historical Inflation Rate is about 3%
45	$ 46,566.15	$ 1,629.82	$ 1,629.82	$ 54,224.56		$ 4,337.96	$ - 0	$ 58,562.52		1.09	$ 53,593.01		401K Employee Contribution	3.50%		Average savings rate is about 3.5% (Which is far below what you need)
46	$ 48,195.97	$ 1,686.86	$ 1,686.86	$ 61,936.24		$ 4,954.90	$ - 0	$ 66,891.14		1.13	$ 59,431.91		401k Company Match	4.00%		Average match is 4%
47	$ 49,882.82	$ 1,745.90	$ 1,745.90	$ 70,382.94		$ 5,630.64	$ - 0	$ 76,013.57		1.16	$ 65,569.98		Investment Return when working (higher risk)	8.00%		See slides on asset allocation (you should take higher risk when working)
48	$ 51,628.72	$ 1,807.01	$ 1,807.01	$ 79,627.59		$ 6,370.21	$ - 0	$ 85,997.79		1.19	$ 72,021.80
49	$ 53,435.73	$ 1,870.25	$ 1,870.25	$ 89,738.29		$ 7,179.06	$ - 0	$ 96,917.36		1.23	$ 78,802.68		Age Start	42		The average worker is 42
50	$ 55,305.98	$ 1,935.71	$ 1,935.71	$ 100,788.78		$ 8,063.10	$ - 0	$ 108,851.88		1.27	$ 85,928.68		Starting Savings (401k balance)	32000		The median 40 year old has 32K in their 401k
51	$ 57,241.69	$ 2,003.46	$ 2,003.46	$ 112,858.80		$ 9,028.70	$ - 0	$ 121,887.50		1.30	$ 93,416.62		Retirement Age	64		Average retirement age is 65 for men, 63 for women
52	$ 59,245.15	$ 2,073.58	$ 2,073.58	$ 126,034.66		$ 10,082.77	$ - 0	$ 136,117.43		1.34	$ 101,284.15		Spending during retirement (in today's $)	42000		What salary do you want pay yourself during retirement (in today's $)
53	$ 61,318.73	$ 2,146.16	$ 2,146.16	$ 140,409.74		$ 11,232.78	$ - 0	$ 151,642.52		1.38	$ 109,549.78		Investment Return when retired (lower risk)	4.50%		See slides on asset allocation (you should take lower risk when retired)
54	$ 63,464.88	$ 2,221.27	$ 2,221.27	$ 156,085.06		$ 12,486.81	$ - 0	$ 168,571.87		1.43	$ 118,232.92
55	$ 65,686.15	$ 2,299.02	$ 2,299.02	$ 173,169.90		$ 13,853.59	$ - 0	$ 187,023.49		1.47	$ 127,353.90		Total at retirement	$ 345,018.53
56	$ 67,985.17	$ 2,379.48	$ 2,379.48	$ 191,782.45		$ 15,342.60	$ - 0	$ 207,125.05		1.51	$ 136,934.06		Inflation-adjusted total at retirement	$ 180,062.58
57	$ 70,364.65	$ 2,462.76	$ 2,462.76	$ 212,050.58		$ 16,964.05	$ - 0	$ 229,014.62		1.56	$ 146,995.77		When you will run out of money	69
58	$ 72,827.41	$ 2,548.96	$ 2,548.96	$ 234,112.54		$ 18,729.00	$ - 0	$ 252,841.54		1.60	$ 157,562.49
59	$ 75,376.37	$ 2,638.17	$ 2,638.17	$ 258,117.89		$ 20,649.43	$ - 0	$ 278,767.32		1.65	$ 168,658.81		Budget during retirement	$ 82,890.63
60	$ 78,014.55	$ 2,730.51	$ 2,730.51	$ 284,228.34		$ 22,738.27	$ - 0	$ 306,966.61		1.70	$ 180,310.53		Inflation-adjusted budget during retirement	$ 42,000.00
61	$ 80,745.06	$ 2,826.08	$ 2,826.08	$ 312,618.76		$ 25,009.50	$ - 0	$ 337,628.26		1.75	$ 192,544.68
62	$ 83,571.13	$ 2,924.99	$ 2,924.99	$ 343,478.24		$ 27,478.26	$ - 0	$ 370,956.50		1.81	$ 205,389.62
63	$ 86,496.12	$ 3,027.36	$ 3,027.36	$ 377,011.23		$ 30,160.90	$ - 0	$ 407,172.13		1.86	$ 218,875.08
64	$ - 0	$ - 0	$ - 0	$ 407,172.13		$ 18,322.75	$ 80,476.34	$ 345,018.53		1.92	$ 180,062.58
65	$ - 0	$ - 0	$ - 0	$ 345,018.53		$ 15,525.83	$ 82,890.63	$ 277,653.73		1.97	$ 140,684.85
66	$ - 0	$ - 0	$ - 0	$ 277,653.73		$ 12,494.42	$ 85,377.35	$ 204,770.80		2.03	$ 100,733.66
67	$ - 0	$ - 0	$ - 0	$ 204,770.80		$ 9,214.69	$ 87,938.67	$ 126,046.81		2.09	$ 60,200.66
68	$ - 0	$ - 0	$ - 0	$ 126,046.81		$ 5,672.11	$ 90,576.83	$ 41,142.08		2.16	$ 19,077.37
69	$ - 0	$ - 0	$ - 0	$ 41,142.08		$ 1,851.39	$ 93,294.14	$ (50,300.66)		2.22	$ (22,644.81)
70	$ - 0	$ - 0	$ - 0	$ (50,300.66)		$ (2,263.53)	$ 96,092.96	$ (148,657.15)		2.29	$ (64,974.59)
71	$ - 0	$ - 0	$ - 0	$ (148,657.15)		$ (6,689.57)	$ 98,975.75	$ (254,322.48)		2.36	$ (107,920.82)
72	$ - 0	$ - 0	$ - 0	$ (254,322.48)		$ (11,444.51)	$ 101,945.02	$ (367,712.01)		2.43	$ (151,492.48)
73	$ - 0	$ - 0	$ - 0	$ (367,712.01)		$ (16,547.04)	$ 105,003.37	$ (489,262.43)		2.50	$ (195,698.68)
74	$ - 0	$ - 0	$ - 0	$ (489,262.43)		$ (22,016.81)	$ 108,153.48	$ (619,432.71)		2.58	$ (240,548.66)
75	$ - 0	$ - 0	$ - 0	$ (619,432.71)		$ (27,874.47)	$ 111,398.08	$ (758,705.27)		2.65	$ (286,051.80)
76	$ - 0	$ - 0	$ - 0	$ (758,705.27)		$ (34,141.74)	$ 114,740.02	$ (907,587.02)		2.73	$ (332,217.60)
77	$ - 0	$ - 0	$ - 0	$ (907,587.02)		$ (40,841.42)	$ 118,182.22	$ (1,066,610.66)		2.81	$ (379,055.72)
78	$ - 0	$ - 0	$ - 0	$ (1,066,610.66)		$ (47,997.48)	$ 121,727.69	$ (1,236,335.83)		2.90	$ (426,575.95)
79	$ - 0	$ - 0	$ - 0	$ (1,236,335.83)		$ (55,635.11)	$ 125,379.52	$ (1,417,350.47)		2.99	$ (474,788.22)
80	$ - 0	$ - 0	$ - 0	$ (1,417,350.47)		$ (63,780.77)	$ 129,140.91	$ (1,610,272.14)		3.07	$ (523,702.61)
81	$ - 0	$ - 0	$ - 0	$ (1,610,272.14)		$ (72,462.25)	$ 133,015.13	$ (1,815,749.52)		3.17	$ (573,329.35)
82	$ - 0	$ - 0	$ - 0	$ (1,815,749.52)		$ (81,708.73)	$ 137,005.59	$ (2,034,463.84)		3.26	$ (623,678.81)
83	$ - 0	$ - 0	$ - 0	$ (2,034,463.84)		$ (91,550.87)	$ 141,115.75	$ (2,267,130.47)		3.36	$ (674,761.51)
84	$ - 0	$ - 0	$ - 0	$ (2,267,130.47)		$ (102,020.87)	$ 145,349.23	$ (2,514,500.56)		3.46	$ (726,588.13)
85	$ - 0	$ - 0	$ - 0	$ (2,514,500.56)		$ (113,152.53)	$ 149,709.70	$ (2,777,362.79)		3.56	$ (779,169.51)
86	$ - 0	$ - 0	$ - 0	$ (2,777,362.79)		$ (124,981.33)	$ 154,201.00	$ (3,056,545.12)		3.67	$ (832,516.64)
87	$ - 0	$ - 0	$ - 0	$ (3,056,545.12)		$ (137,544.53)	$ 158,827.03	$ (3,352,916.67)		3.78	$ (886,640.67)
88	$ - 0	$ - 0	$ - 0	$ (3,352,916.67)		$ (150,881.25)	$ 163,591.84	$ (3,667,389.76)		3.90	$ (941,552.91)
89	$ - 0	$ - 0	$ - 0	$ (3,667,389.76)		$ (165,032.54)	$ 168,499.59	$ (4,000,921.89)		4.01	$ (997,264.85)
90	$ - 0	$ - 0	$ - 0	$ (4,000,921.89)		$ (180,041.48)	$ 173,554.58	$ (4,354,517.95)		4.13	$ (1,053,788.12)
91	$ - 0	$ - 0	$ - 0	$ (4,354,517.95)		$ (195,953.31)	$ 178,761.22	$ (4,729,232.48)		4.26	$ (1,111,134.55)
92	$ - 0	$ - 0	$ - 0	$ (4,729,232.48)		$ (212,815.46)	$ 184,124.05	$ (5,126,171.99)		4.38	$ (1,169,316.12)
93	$ - 0	$ - 0	$ - 0	$ (5,126,171.99)		$ (230,677.74)	$ 189,647.77	$ (5,546,497.50)		4.52	$ (1,228,345.00)
94	$ - 0	$ - 0	$ - 0	$ (5,546,497.50)		$ (249,592.39)	$ 195,337.21	$ (5,991,427.10)		4.65	$ (1,288,233.52)
95	$ - 0	$ - 0	$ - 0	$ (5,991,427.10)		$ (269,614.22)	$ 201,197.32	$ (6,462,238.64)		4.79	$ (1,348,994.20)
96	$ - 0	$ - 0	$ - 0	$ (6,462,238.64)		$ (290,800.74)	$ 207,233.24	$ (6,960,272.63)		4.93	$ (1,410,639.75)
97	$ - 0	$ - 0	$ - 0	$ (6,960,272.63)		$ (313,212.27)	$ 213,450.24	$ (7,486,935.13)		5.08	$ (1,473,183.04)
98	$ - 0	$ - 0	$ - 0	$ (7,486,935.13)		$ (336,912.08)	$ 219,853.75	$ (8,043,700.96)		5.23	$ (1,536,637.17)
99	$ - 0	$ - 0	$ - 0	$ (8,043,700.96)		$ (361,966.54)	$ 226,449.36	$ (8,632,116.87)		5.39	$ (1,601,015.38)
100	$ - 0	$ - 0	$ - 0	$ (8,632,116.87)		$ (388,445.26)	$ 233,242.84	$ (9,253,804.97)		5.55	$ (1,666,331.14)
101	$ - 0	$ - 0	$ - 0	$ (9,253,804.97)		$ (416,421.22)	$ 240,240.13	$ (9,910,466.32)		5.72	$ (1,732,598.09)
102	$ - 0	$ - 0	$ - 0	$ (9,910,466.32)		$ (445,970.98)	$ 247,447.33	$ (10,603,884.63)		5.89	$ (1,799,830.10)
103	$ - 0	$ - 0	$ - 0	$ (10,603,884.63)		$ (477,174.81)	$ 254,870.75	$ (11,335,930.19)		6.07	$ (1,868,041.22)
104	$ - 0	$ - 0	$ - 0	$ (11,335,930.19)		$ (510,116.86)	$ 262,516.87	$ (12,108,563.92)		6.25	$ (1,937,245.71)
105	$ - 0	$ - 0	$ - 0	$ (12,108,563.92)		$ (544,885.38)	$ 270,392.38	$ (12,923,841.68)		6.44	$ (2,007,458.02)
106	$ - 0	$ - 0	$ - 0	$ (12,923,841.68)		$ (581,572.88)	$ 278,504.15	$ (13,783,918.70)		6.63	$ (2,078,692.85)
107	$ - 0	$ - 0	$ - 0	$ (13,783,918.70)		$ (620,276.34)	$ 286,859.27	$ (14,691,054.32)		6.83	$ (2,150,965.07)
108	$ - 0	$ - 0	$ - 0	$ (14,691,054.32)		$ (661,097.44)	$ 295,465.05	$ (15,647,616.82)		7.03	$ (2,224,289.81)
109	$ - 0	$ - 0	$ - 0	$ (15,647,616.82)		$ (704,142.76)	$ 304,329.00	$ (16,656,088.58)		7.25	$ (2,298,682.38)
110	$ - 0	$ - 0	$ - 0	$ (16,656,088.58)		$ (749,523.99)	$ 313,458.87	$ (17,719,071.44)		7.46	$ (2,374,158.34)
111	$ - 0	$ - 0	$ - 0	$ (17,719,071.44)		$ (797,358.21)	$ 322,862.64	$ (18,839,292.30)		7.69	$ (2,450,733.46)
112	$ - 0	$ - 0	$ - 0	$ (18,839,292.30)		$ (847,768.15)	$ 332,548.52	$ (20,019,608.97)		7.92	$ (2,528,423.75)
113	$ - 0	$ - 0	$ - 0	$ (20,019,608.97)		$ (900,882.40)	$ 342,524.98	$ (21,263,016.35)		8.16	$ (2,607,245.45)
114	$ - 0	$ - 0	$ - 0	$ (21,263,016.35)		$ (956,835.74)	$ 352,800.73	$ (22,572,652.81)		8.40	$ (2,687,215.05)
115	$ - 0	$ - 0	$ - 0	$ (22,572,652.81)		$ (1,015,769.38)	$ 363,384.75	$ (23,951,806.93)		8.65	$ (2,768,349.25)
116	$ - 0	$ - 0	$ - 0	$ (23,951,806.93)		$ (1,077,831.31)	$ 374,286.29	$ (25,403,924.53)		8.91	$ (2,850,665.01)

Inflation Adjusted Total 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 37735.199999999997 42757.619417475726 48039.334018286361 53593.00613373697 59431.913136392504 65569.977298221405 72021.797098172159 78802.680049544026 85928.677120927852 93416.618828075181 101284.15307780869 109549.78484902431 118232.91779996462 127353.89789527148 136934.059150866 146995.77159946231 157562.49158451374 168658.81449562166 180310.53006392453 192544.68034173863 205389.62049675337 218875.08255741061 180062.583759703 140684.8543969 8023 100733.66295615956 60200.658047754136 19077.366660100059 -22644.807611840231 -64974.586363468974 -107920.81820371366 -151492.48060473864 -195698.68177859404 -240548.66258119489 -286051.79844402784 -332217.60133398941 -379055.72174176591 -426575.95069917029 -474788.22182585724 -523702.61340584548 -573329.35049428011 -623678.80705487635 -674761.50812849111 -726588.13203327497 -779169.51259686623 -832516.64142109244 -886640.67017965205 -941552.91294925858 -997264.84857473313 -1053788.1230685397 -1111134.5520452659 -1169316.1231915564 -1228344.998772016 -1288233.5181716084 -1348994.2004750783 -1410639.7470839387 -1473183.0443715688 -1536637.16637698 -1601015.3775378098 -1666331.1354631174 -1732598.0937465609 -1799830.1048205397 -1868041.2228519067 -1937245.7066798469 -2007458.0227965438 -2078692.8483712508 -2150965.0743184048 -2224289.8084104205 -2298682.3784358152 -2374158.3354033274 -2450733.4567926968 -2528423.7498527844 -2607245.4549477277 -2687215.0489518209 -2768349.2486938382 -2850665.0144515149