| YEARS | 6 % | 7 % | 8 % | 9 % | 10 % |
| 5 | $52,000 | $51,000 | $49,000 | $48,000 | $47,000 |
| 10 | $90,000 | $86,000 | $82,000 | $79,000 | $76,000 |
| 15 | $118,000 | $111,000 | $105,000 | $99,000 | $93,000 |
| 20 | $140,000 | $129,000 | $120,000 | $111,000 | $104,000 |
| 25 | $155,000 | $141,000 | $130,000 | $119,000 | $110,000 |
| 30 | $167,000 | $150,000 | $136,000 | $124,000 | $114,000 |
Table is rounded to the nearest thousand
This chart shows the approximate amount of money or investments, that you will need invested, to allow you to withdraw $1,000 a month for the periods shown in the left hand column. For example, assume that your future savings will earn 8% interest. Then assume that, after you retire, you will need $1,000 a month for 10 years. In looking at the chart, you will need, at the start of the ten years, approximately $82,000. If you have this amount, you will be able to withdraw the $1,000 a month for the full 10 years, at which time your savings would be close to zero.
NOTE--WE ARE SPENDING
THE PRINCIPAL
ALONG WITH THE INTEREST!!
We are actually living up to that famous Bumper Sticker:
At some point, seniors! You may need to start spending your principal. If you
need more detailed calculations or have a question.
Now, we can use this chart to calculate what your future earning power must be
in order to supplement your Social Security Benefits. Assume that you will need
$3,000 a month when you retire at age 65. Statistically, you will live at least
10 more years but we'll assume that you will live 15 years. If you really need
the $3,000 and your future investments will earn 8%, then you will need to have
a retirement fund of $105,000 multiplied by 3 or $315,000.
Can you use our other charts to determine how much you will need to save each month in order to have the $315,000?
Go back to the Table titled, How a $100 A MONTH WILL GROW! Now, we can then use this chart to fine tune our future retirement needs. Assume an interest rate, years to retirement and find the amount closest to your $315,000 goal.
For a full blown Retirement Seminar Outline, go to
Where
I explain this chart and a lot of others that relate to Earnings, Inflation and
Compounded Interest
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