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# Retirement Planning

To figure out how much you will need, try the Fidelity Retirement calculator or use the following worksheet:
1. Annual Income you'd like at retirement in today's
dollars                                             \$_________
2. Your age                                             _________
3. You estimated retirement age                         _________
4. Years to retirement(#3-#2)                           _________
5. Annual income after retirement(#1*1.03^#4)          \$_________
6. Assuming 5% interest, how much of a nest egg you'll
need(#5/0.05)                                       \$_________
With about 3% inflation currently, today's \$1 is equal to \$1.03 next year. So you'll need a lot more to retire in the future than today at the same living standard. Line 5 figures what annual income at retirement would equal what you want in today's dollars. Line 6 is how much you would need at your estimated retirement age, assuming at retirement, you put all your money into CDs that pay 5% a year. Now look at the chart under your age, look at 15% annual return, which is typical mutual fund performance, and see about how much you would need to save per month to reach that goal. If as you go along in your career, your retirement expectations rise, simply save and invest more accordingly.