by: jacob wludyka [email protected]

RETIREMENT PROBLEMBy: Jacob Wludyka

[email protected]

www.landingpages.moneymanagement.org

mailto::[email protected]

http://www.landingpages.moneymanagement.org/

About myself

Plan to graduate Rowan University in 2015 in the Bachelors of Accounting and Finance where I’ll be making anywhere from $34,000 to $50,000 depending on the location (tncpa.org) within the state of NJ where I will be living on my own.



The current problem

Currently in the US, approximately 60% of Americans are saving for retirement and of those saving, the average amount saved is 5-7% of their disposable income (classandcareers.com). Also, with the way America is running right now, Social Security and Medicare are slowly going bankrupt (classandcareers.com). With these two major organizations out of the way, only 18% of Americans feel that they could live comfortably after they retire due to their savings (classandcareer.com). With the way the current finance helpers going out of the way, the people of today need to save or else they will be stuck in Financial problems when they reach the age to retire.



The Average Family

classa

ndca

reers.co

m

Picture shows the averages of the common household in the nation like:- 40% Employed Americans aren’t saving- 25% have no savings- 7.7% Americans have no bank accounts- Average family makes $43,000 a year and have $3,800 in the bank- 4/10 have an emergency fund plan



My Future Saving Plan

My future saving plan shows how much I should save and when I will save in order to accumulate a healthy annuity by the time I reach proper retiring age.

I assumed:-Inflation rate will be a constant 3.25%-My salary will remain constant at $45,000-Plan working for 45 years and living 20

years after retirement.



What I found out

I discovered that if I decided to start saving from the beginning of my career, I would only need to save $4,850 a year in order to accumulate an equivalent annuity after I retire, however, if I have waited 15 years to save, my savings will have to be $16,450. I went from having to pay $404.17 dollars a month to $1,370 a month. As the saving years become smaller and smaller, the amount of money that goes into my savings account will keep getting greater and greater.

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

45 30 15 5

$4,850.00$16,450.00

$68,680.00

$323,999.00

Annual Savings

Saving Years

Savin

gs



Having Trouble?

Here are some possible solutions:

Conjure a spreadsheet that helps accumulate monthly expenses and all of the necessary info (see my plan following page). This will help sort out any problem by creating a budget.

Consult a Financial Advisor to help sort out problems

Cut Back on unnecessary spending and save (not the best solution, but it helps).



My Saving Project

Monthly Expenses: Monthly Salary $3,750.00 fed tax $937.50 state tax $262.50 SS $243.75 Emp tax $187.50 rent $984.58 utilities $50.00 Groc(food) $175.00 Cell $60.00 Internet $60.00 clothes $100.00 Car Payment? $0.00 Car Insurance $80.00 gasoline $80.00 entertainment $50.00 car maintenance $25.00 Misc. $50.00 savings $404.17 Total $3,750.00

career years 45 45 45 45

saving years 45 30 15 5inflation 3.25% 3.25% 3.25% 3.25%

FV of salary

$189,786.46

$189,786.46 $189,786.46 $189,786.46

ROI 8.00% 8.00% 8.00% 8.00%

annual saving $4,850.00 $16,450.00 $68,680.00 $323,999.00

Total Saved

$1,874,552.24

$1,863,508.82

$1,864,807.18

$1,900,772.84

Years after ret 20 20 20 20

Annuity=$190,927.2

9 $189,802.4

9 $189,934.73 $193,597.91



Why Save early?

The answer is simple, the earlier the person decides to save, the easier sorting the person’s finances will be in the future when they retire. With the current way the Social Security is going, it will be completely empty by the time my generation retires. So…



Save

Earlywww.landingpages.moneymanagement.org


sources

http://www.tncpa.org/student/career/salaries.aspx

http://www.classesandcareers.com/education/2010/05/17/average-american-debt-and-savings/









by: jacob wludyka [email protected]

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