How much money will you need?

The first thing you need to do in determining how much money you'll need in retirement is to sit down with pencil and paper and evaluate your situation right now. Here are the things to consider:
1 your age,
2 the amount of money you have saved,
3 the amount of money you intend to save each year before you retire.

The Quicken software package has a retirement calculator that will run out numbers for you to look at. You can run out "what if" situations according to your expectations. What if I were to save $7500 per year rather than $5000 per year? What if I were to run calculations to age 80 rather than 85? Below is a sample of one set of calculations.

  Current Savings                                   $100,000.00

  Annual Yield                                      6.000%
  Annual Contribution                               $5,000.00
  Current Age                                       50
  Retirement Age                                    65
  Withdraw Until Age                                85
  Other Income (SSI, etc.)                          $0.00
  Annual Income After Taxes                         $10,008.17
  Tax Sheltered Investment
  Retirement Tax Rate                               15.000%

  Annual Income is in today's dollars

                               Deposit Schedule
  8/ 6/97 - DEMO                                                      Page 1
       Age             Deposit             Income              Balance

        0               0.00                0.00             100,000.00
       50             5,000.00              0.00             111,000.00
       51             5,000.00              0.00             122,660.00
       52             5,000.00              0.00             135,019.60
       53             5,000.00              0.00             148,120.78
       54             5,000.00              0.00             162,008.02
       55             5,000.00              0.00             176,728.50
       56             5,000.00              0.00             192,332.21
       57             5,000.00              0.00             208,872.15
       58             5,000.00              0.00             226,404.48
       59             5,000.00              0.00             244,988.74
       60             5,000.00              0.00             264,688.07
       61             5,000.00              0.00             285,569.35
       62             5,000.00              0.00             307,703.51
       63             5,000.00              0.00             331,165.73
       64             5,000.00              0.00             356,035.67
       65               0.00              21,204.88          354,920.64
       66               0.00              22,053.08          352,839.61
       67               0.00              22,935.20          349,698.68
       68               0.00              23,852.61          345,396.84
       69               0.00              24,806.71          339,825.53
       70               0.00              25,798.98          332,868.14
       71               0.00              26,830.94          324,399.44
       72               0.00              27,904.18          314,284.98
       73               0.00              29,020.34          302,380.51
       74               0.00              30,181.16          288,531.31
       75               0.00              31,388.40          272,571.49
       76               0.00              32,643.94          254,323.20
       77               0.00              33,949.70          233,595.91
       78               0.00              35,307.69          210,185.52
       79               0.00              36,719.99          183,873.46
       80               0.00              38,188.79          154,425.75
       81               0.00              39,716.34          121,591.97
       82               0.00              41,304.00           85,104.19
       83               0.00              42,957.20           44,675.81
       84               0.00              44,675.81             0.00

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