Obviously, it is hard to foresee what will happen in the future. Uncertainties of social security, unexpected medical expenses, the financial needs of our dependents, etc. are just a few reasons for which planning financially for retirement is essential. Regardless of the challenges faced throughout life, a secure nest egg will do wonders for helping to cope. Financial hiccups can be smoothed out over the long term, provided that they don't derail financial plans in the short term, and there is much to be said for the peace of mind that a sizable nest egg can provide.
A. HOW MUCH MONEY DO I NEED TO HAVE WHEN I RETIRE? 1. At what age do you plan to retire? (70 is the age at which you can expect to start receiving full social security benefits under current provisions. In this assignment, retirement age is set at 70, but thinking about yourself, when would you like to retire? I am a person who loves to work. I feel extremely bored when I have idle time, so I imagine being a person who works longer than age 70, ceteris paribus. Both of my grandfathers and grandmothers worked until 75 or older. I plan on following suit, if not longer, so for purposes of this assignment I will use the age 75 as the year upon which I retire. 2. How long do you expect to live after retirement? What risk do you face in this estimate? I.e. what happens if you cover the cost of your retirement until say, age 90, but you live to be 95? Following the questionnaire, it has been determined that my upper, median, and lower quartiles expected lifespan are as follows: Upper: 97.23 Median: 90.34 Lower: 81.93 According to the analytical results, my life expectancy is 88 years old. Making small changes can alter this life expectancy estimate. Limiting driving, narrowing my stressors, and changing my sleep patterns would all extend my life expectancy. These are certainly things that I foresee doing, so in order to avoid planning a retirement for a shorter period that I’d actually need, I think...