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Unformatted text preview: retiring today). 2. Estimate inflation; you may want to investigate the impact of several different rates, but good guesses would be 2%, 2.5% and 3% 3. Calculate the amount of annual income you will need when you get ready to retire given the inflation estimates in step 2 (i.e, the FV of step 1) 4. Calculate the present value AT THE TIME YOU PLAN TO RETIRE of the annual retirement income you calculated in step 3. 5. Estimate the return you can earn on your investment; this will depend on the decisions you make, but good guesses are 7%, 8%, 9%, and 10% 6. Calculate how much you will need to save to retire at a reasonable range of ages. 7. Additionally, you will need to think about where you will put your money, etc....
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 Fall '11
 JimBrau
 Finance, Inflation

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