Retirement+Savings

You already know that saving money for retirement is important. You certainly remember the three-legged stool of Social Security, pensions, and personal savings. Although there are many factors that go into whether you will have a comfortable (and financially safe) retirement versus no retirement, the following graphic from a personal finance magazine gives you a rule of thumb for your budgeting. Note that these percentages are based on your //**gross**// income (not //**net**// income).

 Your task: Determine how much of your income you will invest for your retirement. Copy the table that is below this image into your section of the wiki and complete the calculations and explanation.

 After you complete the table in your wiki, include the dollar amount of retirement savings per month in your Google Budget Spreadsheet.



Your responses here: ||
 * ||= ** Dollar amount or rate ** * ||
 * **__//Gross//__ //__monthly__// income -** ||  ||
 * **Retirement savings rate (as a percentage)** ||  ||
 * **Dollar amount of retirement savings per month (gross monthly *rate = Dollar amount of retirement savings per month).** * ||  ||
 * **Calculate how much money you will have at retirement at age 70 if you invest your budgeted amount at __ 6% __ yield. Use the compound interest spreadsheet calculator to do this. Assume your starting age is 22. You will need to calculate your annual contribution (principal) by multiplying your monthly retirement savings (above) by 12.** ||  ||
 * **Calculate how much money you will have at retirement at age 70 if you invest your budgeted amount at __8%__ yield. Use the compound interest spreadsheet calculator to do this. Assume your starting age is 22. You will need to calculate your annual contribution (principal) by multiplying your monthly retirement savings (above) by 12.** ||  ||
 * **Respond to these questions in a few well written sentences:**
 * **Why did you select the retirement savings rate that you did?**
 * **What are the opportunity costs for your choice?** *
 * **Why did you select the retirement savings rate that you did?**
 * **What are the opportunity costs for your choice?** *

Here's the compound interest spreadsheet calculator if you need it