Study Document
Retirement Planning for Retirement Can Be a Essay
Pages:2 (689 words)
Sources:3
Subject:Personal Issues
Topic:Retirement
Document Type:Essay
Document:#92569537
Retirement
Planning for retirement can be a significant source of anxiety for most people, even those who are currently financially secure. A lack of job security compounds the problem of being able to properly save money for retirement. Mandatory retirement laws make financial planning for retirement even more important, even for the very young. Ideally, I would like to have at least $500,000 in the bank, as cash, for my retirement. As a student on a relatively small salary, this sum seems enormous but I need to remember that if I save even small amounts now, by the time I am old enough to earn a healthy salary that I can perhaps put aside $10,000 per year with the goal of saving $500,000 for retirement. At an ideal interest rate of 7.5%, my retirement account would be sufficient for daily living expenses and regular medical care.
According to Krantz (2011), "The wide array of variables that go into retirement planning are the big reason why you probably can't find a one-size fits all number. That's where online retirement calculators come in." The Internet offers a wide variety of retirement planning calculators, including those that are sponsored by investment firms that can also offer financial planning services. There is a table on the Free Financial Advice Website that also offers some helpful advice for people curious about what they need for retirement. The MSN Money Website offers even more helpful tools for retirement planning.
In addition to the standard 401K, employer-sponsored retirement plans include 401a, 419e, 403b, 457, and VEBA. Each of these retirement plans are specially designed to allow tax-deferred contributions. One of the main reasons why the estimated retirement goals I have set for myself are feasible is precisely because of the unique status given to retirement savings plans. There are also Roth IRAs and regular Social Security to boost my savings power. If I manage my money well, I can make investments now that can also be used to build my net worth without directly contributing to an actual retirement fund. The…
Sample Source(s) Used
References
"How Much Money Do You Need to Retire Early?" Free Financial Advice. Retrieved online: http://www.free-financial-advice.net/retire-early.html
Krantz, M. (2011). How much money is enough to retire on? USA Today. Retrieved online: http://www.usatoday.com/money/perfi/columnist/krantz/2011-03-16-howmuchdoyouneedtoretire.htm
MSN Money. Website retrieved: http://money.msn.com/retirement/
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