Retirement planning

Calculating annual investment to meet retirement target. Use the Retirement Project Worksheet Download Retirement Project Worksheetto help the Sullivans determine how much they need to retire early in about 20 years. Both have promising careers, and both make good money. As a result, theyre willing to put aside whatever is necessary to achieve a comfortable lifestyle in retirement. Their current level of household expenditures (excluding savings) is around $75,000 a year, and they expect to spend even more in retirement; they think theyll need about 125 percent of that amount. They estimate that their Social Security benefits will amount to $20,000 a year in todays dollars and that theyll receive another $35,000 annually from their company pension plans. George and Jude feel that future inflation will amount to about 3 percent a year, and they think theyll be able to earn about 6 percent on their investments before retirement and about 4 percent afterward. Find out how big their investment nest egg will have to be and how much theyll have to save annually to accumulate the needed amount within the next 20 years. Please fill out the areas of the worksheet shaded in blue with the information above and answer the questions below in the appropriate cell. At what age would you like to retire? Describe the type of lifestyle you envision-where you want to live, whether you want to work part-time, and so on. Do you expect to have enough money for the lifestyle in question 1. If not, describe what steps you think you should take to realize your goal. What sources of income would best benefit you in your retired years?