Fix retirement portion

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Retirement Plan Model The first step is to determine the amount to be saved annually from the socila security fund and the 401k plan. The annual social security savings is assumed to increase at a ratio of 0.2 of the balance at the end of the year. An undergraduate with a monthly salary of $70,000 saves $7,500 monthly and the employer does not offer 401K plan . Retirement savings will increase with a rate 2% annually. With a vehicle amounting to $250,000 in 67 th year and $200,000 for a house in year 71th and 72nd. Retirement plan model computes the amount a worker will earn in future from regular savings, a model will assist an individual to identify how much should be saved regularly in order to meet the set future financial goals (Moore & Asay, 2012). Investment rate of returns are unpredictable in future, thus old retirees should compensate for this by shifting some of the fund into a conservative investment with a more predictable returns (Brandon, 2013). This model calculates a retirement plan for a monthly salary of $65,000 with an annual pension scheme saving of $100,000. This model is applicable in states that don’t tax retirees’ social security income such as Arizona, Delaware, and Hawaii among others (Moreno, 2016). Only federal tax rate of 6% is applied to the retirement benefits. This model assumes that a fixed rate of return and tax rate both they can be adjusted in future. Reference Asay, T. J. (2012). Family Resource Management. London: Sage. Brandon, E. (2013). 5 Retirement Variables Outside Your Control. U.S. News Money, 1-2. Moreno, T. (2016). Seven States Without an Income Tax. thebalance, 1-2.