Week 10 Retirement Calculator and Asset Allocation
How Much Will it Cost to Retire?
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How Much income will you have in retirement?
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How Much income will you need to generate for retirement?
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How Much do you need to save each month?
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How Much will you spend each month before you retire?
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How Much will you spend each month after you retire?
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How Much return should you expect from your investments before you retire?
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How Much return should you expect from your investments after you retire?
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How Much investment risk do you want?
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How Much investment risk do you have?
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How Much investment risk do you need?
Investment Risk = Asset Allocation
In addition to calculating the cost of retirement, you will get a chance to play around with Asset Allocation in your RightCapital planning portal. See below for more details.
How to use a
You Can Use any Retirement Calculator you like, just google Retirement Calculator.
First, enter your current age, income, savings balance and how much you save toward retirement on a monthly basis. That’s enough information to get an overview of where you stand today. Be sure to use accurate data in the retirement calculator.
allow you to add specific Social Security options, adjust your spending level in retirement, change expected retirement age and much, much more.
Comparing Results
You can easily adjust the inputs on your Retirement Calculator to see how various choices, like saving more money or planning to retire later, might impact your retirement calculations – and your goals for retirement.
You can also use any Retirement Calculator you like. Compare the Retirement Calculator results with your .
If your BayRock plan says you have $117,000,000 available at the end of your plan, and your Retirement Calculator says you run out of money at age 53, guess what… You have something wrong in your BayRock plan.
Calculating the Cost of Retirement
Retirement planning is one of the 7 essential elements of financial planning.
Retirement Planning is all about making sure you have sufficient funds to live comfortably after you retire.
Retirement Planning takes into account several factors, including:
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your current age,
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desired retirement age,
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current savings,
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expected retirement lifestyle, and
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sources of income you’ll have during retirement
The goal is to ensure your retirement savings will last throughout your retirement years.
In this assignment, you’ll calculate the cost of retirement and how much you need to save, using an online retirement calculator.You can find a well-designed retirement calculator online that will ask you a series of questions to estimate how much you need to save to meet your retirement goals. Here’s a list of basic questions that a good retirement calculator should include:
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Current Age and Desired Retirement Age: These questions help determine the timeframe you have to save for retirement and how long your retirement savings need to last.
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Current Savings: This includes all retirement accounts (like 401(k)s, IRAs), savings accounts, and other investments.
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Annual Income: Your current annual income can help estimate how much you can afford to save and what your future earnings potential might be.
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Annual Savings: How much you’re currently saving each year for retirement. This could also include employer contributions if applicable.
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Expected Rate of Return on Investments: An estimate of how your investments will grow over time before and during retirement.
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Retirement Income Sources: This includes Social Security benefits, pensions, annuities, or any other expected income during retirement.
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Desired Retirement Income: The amount of money you’ll need annually to live comfortably in retirement, often expressed as a percentage of your current income.
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Inflation Rate: Since the cost of living increases over time, a good calculator will take into account the impact of inflation on your retirement savings and expenses.
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Life Expectancy: An estimate of how long you will need your retirement savings to last. Some calculators use general statistics, while others may allow for a personalized estimate based on health and family history.
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Healthcare Expenses: Healthcare can be a significant expense in retirement, so some calculators will ask about your expectations for healthcare costs.
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Tax Considerations: The impact of taxes on your retirement savings and withdrawals, considering both your current tax bracket and expected tax bracket in retirement.
By answering these questions, you can get an estimate of how much you need to save to achieve your retirement goals. It’s important to remember that these calculators provide estimates based on the information you provide and the assumptions you’re making about your future.
Be sure to compare the retirement analysis section in your RightCapital plan with what you find as you complete your Retirement Calculator.
Capstone Review 50 Points
Understanding the elements of your financial plan will help you prepare for your Capstone Assignment. In order to get all 50 points for this week’s assignment, you will need to include the following elements.
Last Week, You Added Ten Years to Your Age
This Week, Add Ten Years of 401k Contributions to Your Plan
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Remember your dream job, how much do you expect to be paid annually?
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How much will you contribute to your 401k at this job?
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How much will your employer match in this 401k plan?
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What is the total amount of contributions each year (including company match)?
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Your 401k Account should include 10 years of contributions along with some growth based on your Asset Allocation (see below)
Retirement Analysis Screenshots
The detailed retirement analysis tool will help you determine whether you are on track for a successful retirement. Monte Carlo simulations, stress tests, and viewing specific scenarios can help you evaluate your retirement plan and see the impact of potential changes.
Moving The Needle
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Probability of Success – Before Asset Allocation
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Probability of Success – After Asset Allocation
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Action Items – Shows an Overview of Your Changes
Profile Screenshots
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Profile/Net Worth/Investment Accounts
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Profile/Goals
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Profile/Income
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Profile/Savings
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Profile/Expenses
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Profile/Family
Asset Allocation Screenshots
In order to determine whether your assets are properly allocated, it is necessary to link all of your investment accounts here. Doing so will allow you to obtain a more accurate showing of how any of your allocations across cash, stocks, fixed income, and / or other financial vehicles relate to one another.
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Asset Allocation Before Making Changes
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Asset Allocation After Making Changes
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Asset Allocation – Summary
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Asset Allocation – Detail
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Other Screenshots from Your Profile
Remember to save this week’s assignment, this is the basis for your Capstone Assignment (worth 200 points!).
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Profile/Goals
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Profile/Income
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Profile/Savings
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Profile/Expenses
Screenshots Data Cards from Dashboard
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Dashboard/Balance Sheet
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Dashboard/Balance Sheet/Current
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Dashboard/Balance Sheet/Details
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Dashboard/Liquidity
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Dashboard/Budget
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Dashboard/Debt
Retirement Calculator Screenshot
Include a screenshot from the and then be sure to comment as instructed below.
Include a short summary (150 – 400 words) to highlight:
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What you learned in this week’s assignment
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How did your compare with your financial plan?
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Questions you have regarding your plan
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Over $5,000,000 in your plan? Be sure to tell me why you have so much left at the end of your plan. If you missed the announcement in class, be sure to add 10 years to your age as well.
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How will you use this week’s assignment to prepare for your Capstone
Class Collaboration:
In addition to the class collaboration item listed below, be sure to include a screenshot for this week’s class collaboration component(s) as outlined in this week’s Zoom Meeting.
Side by Side Screenshot
Include a side by side Screenshot (or two screenshots if its easier for you): Retirement Calculator Screenshot and Retirement Analysis (you can find this tab in your BayRock plan)
Session 10 Quiz (Screenshot)
Weekly Zoom Meeting
This Week’s Zoom Meeting includes a secret screenshot that is part of this week’s class collaboration.
In addition to the other topics that are open for you to discuss in this week’s assignment, be sure to include this week’s Secret Screenshot! If you’re missing this week’s Secret Screenshot, you should expect a Ten Point Deduction.
As always, this week’s Zoom Meeting is posted to this semester’s YouTube Playlist.
Include One PDF File with all Screenshots Please.
