Dr. Walden's 8-Step Retirement Plan

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Section 1

Dr. Walden’s 8 – Step Retirement Plan

Step 1:

Age: 26

Age of retirement: 66 Years left until retirement: 40 Years in retirement: 20

Salary after graduation: $50,000/ year

Percent of salary needed for retirement: 75%

Amount needed per year for retirement: $37,500 Total needed for 20 years of retirement: $613,178.75

Real interest rate: 2%

(Conservative rate, burden of saving on myself. I am not a risk taker and do not feel confident in investing in the stock market)

Step 2:

PVA = 37500[1-(1+0.02)^-20/0.02] PVA = $613,178.75

Step 3:

Amount of Social Security payments received each year: $0

Lump sum present value of SS payments: $0

(I am not including Social Security in my analysis because it is difficult to predict what the amounts are going to be for someone who is 20 years away from retiring.)

Step 4:

Amount of Defined Benefit pension plan: $0

Lump sum of present value: $0

(I am not including Defined Benefits because industrial design entrepreneurship does
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Planning for my retirement will improve my quality of life. I will be able to travel and maintain my standard of living. I will be able to enjoy my retirement years without having to work or stress about finances since I did proper planning, saving, and investing.

What impact will your personal retirement planning have on your immediate family?

Planning for my retirement will provide stability and peace of mind for my immediate family. They will benefit from the saving and investing that I researched and applied to my future.

What impact will your personal retirement planning have on society? I am not going to depend on others and on society when I retire because I have planned on saving and investing in order to be responsible and be able to support myself during retirement.

What impact would there be on the economy if every American had implemented a retirement
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