(CIS331 -SystmMdlngThry) Figures 5.2 1.0

(CIS331 -SystmMdlngThry) Figures 5.2 1.0 - Retirement...

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Unformatted text preview: Retirement Planning Parameters Results Tornado chart inputs Current income $116,000 Year funds out 73 10% 90% Current savings $167,000 Return on assets Employer savings rate 10% pre-retirement 6.00% 12.00% Current savings $9,500 post-retirement 3.00% 8.00% Age 46 Income growth rate 0.00% 6.00% Return on assets Inflation post-retirement 1.00% 5.00% pre-retirement 8% Tax rate post-retirement 30.00% 40.00% post-retirement 5% Income growth rate (includes inflation) 4% Inflation post-retirement 2% Savings rate 10.00% 15.00% Tax rate post-retirement 35% Percent of final income spent 60.00% 90.00% Retirement age 60 70 Decision Savings rate 5.00% Percent of final income spent 70% Retirement age 65.0 Model PRE-RETIREMENT Employer Personal Beginning of End of POST-RETIREMENT Beginning of End of Funds depleted? AgeSalary contribution Contribution Year Assets Year Assets Age Spending Withdrawal Year Assets Year Assets 1=Yes 46 116,000 $11,600 $5,800 $167,000 $197,760 65.0 171,076 263,194 1,852,758 1,682,201 65 47 120,640 $12,064 $6,032 $197,760 $231,677 66 174,498 268,458 1,682,201 1,497,854 66 48 125,466 $12,547 $6,273 $231,677 $269,031 67 177,988 273,827 1,497,854 1,298,919 67 49 130,484 $13,048 $6,524 $269,031 $310,126 68 181,547 279,304 1,298,919 1,084,561 68 50 135,704 $13,570 $6,785 $310,126 $355,291 69 185,178 284,890 1,084,561 853,900 69 51 141,132 $14,113 $7,057 $355,291 $404,885 70 188,882 290,588 853,900 606,007 70 52 146,777 $14,678 $7,339 $404,885 $459,292 71 192,660 296,399 606,007 339,908 71 53 152,648 $15,265 $7,632 $459,292 $518,932 72 196,513 302,327 339,908 54,576 72 54 158,754 $15,875 $7,938 $518,932 $584,260 73 200,443 308,374 54,576-251,069 1 73 55 165,104 $16,510 $8,255 $584,260 $655,767 74 204,452 314,541-251,069-578,163 1 74 56 171,708 $17,171 $8,585 $655,767 $733,984 75 208,541 320,832-578,163-927,904 1 75 57 178,577 $17,858 $8,929 $733,984 $819,489 76 212,712 327,249-927,904-1,301,548 1 76 58 185,720 $18,572 $9,286 $819,489 $912,907 77 216,966 333,794-1,301,548-1,700,419 1 77 59 193,149 $19,315 $9,657 $912,907 $1,014,911 78 221,305 340,470-1,700,419-2,125,909 1 78 60 200,874 $20,087 $10,044 $1,014,911 $1,126,235 79 225,731 347,279-2,125,909-2,579,484 1 79 61 208,909 $20,891 $10,445 $1,126,235 $1,247,671 80 230,246 354,225-2,579,484-3,062,682 1 80 62 217,266 $21,727 $10,863 $1,247,671 $1,380,074 81 234,851 361,309-3,062,682-3,577,126 1 81 63 225,956 $22,596 $11,298 $1,380,074 $1,524,374 82 239,548 368,535-3,577,126-4,124,517 1 82 64 234,995 $23,499 $11,750 $1,524,374 $1,681,573 83 244,339 375,906-4,124,517-4,706,649 1 83 65 244,395 $24,439 $12,220 $1,681,573 $1,852,758 84 249,226 383,424-4,706,649-5,325,406 1 84 66 254,170...
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(CIS331 -SystmMdlngThry) Figures 5.2 1.0 - Retirement...

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