Considering my current job, my monthly retirement income before inflation is 300
Q 1.12
My monthly retirement income after inflation is 150.
Q 1.13
Based on my contributions, my current approach can provide75, 495 when I retire, which assumes the annual retirement expenses of about 12,000. However, my savings are expected to run out at the age of 70.
Q 1.14
Some of the steps, which I have to make when I retire, are like saving at least 1000 dollars a month to have enough income when I retire. Accordingly, my income will comprise of social security, pension. The second step is to identify my assets, which include stocks and bonds. Furthermore, I will have to apply for supplemental health insurance. I will also have to invest in different ways apart from just accumulation. I have a conviction by doing so then I will have a secure retirement plan.
Q 1.15
It will take me around 83 years to reach $1 million of savings.
Q 1.16
If I save 800 dollars a month at 6%, then I will reach $1 million at the age of 69
Q 1.17
I do not think one million dollars will be sufficient for me after I retire since am not sure about my health. Therefore, being admitted to a hospital or placed into assisted living are possible scenarios. In that case, future cannot be predicted regarding health along with the economy. If at all inflation will increase then it means the price of living will also go up and that implies that one million dollars will not be enough in future. However, it will also depend on the kind of life that I will be living. Under those circumstances, if I invest it in other things to bring profit, then I think it might be enough.
Q 1.18
A 401K is an employer-sponsored deferred income plan. However, for the employee to contribute to the 401K, he has to designate a portion of each paycheck to be diverted into the project, and the contributions occur before income taxes are deducted. In like manner, a Roth IRA is a set up directly between the individual and the investment firm. In that case, the individual's employer is not involved.
Q 1.19
The Roth IRA would lead to higher incomes. As an illustration, the Roth IRA is not taxable especially if you are 59 years and above, disabled or diseased. However, the traditional IRA are taxable when withdrawn and hence after taxes the total earning reduces.
Q 1.20
One scenario of inputs where Roth IRA leads to higher earnings than the traditional IRA is where the current age is 40years, the age of retirement 70 and the adjusted gross income 50,000 dollars.
