Retirement Planning

Assumptions / Inputs to your model

Current Salary - $56,000

401K Match - 50% of your contribution up to 6% of your salary

Age at Start -30

Retirement Age – 65 (35 full years of employment

Initial Investment - 4% of your salary

Subsequent investments include 25% of your raise in addition to the 4%    

Annual Raises 2-5% (Variable)

Assume an annual growth rate of 6-10% and monthly contributions.          

401K Limit is 18,500 in year 1

Assume there is a 50% chance the government will increase the limit by $500 each year          

Compute the following for 50 simulations (Average)

1. How much money will you have saved for your retirement at age 65? 

2. If you want to draw 70% of your final pay check each year, how long will your money last?