National Savings Rate Guidelines for Individuals. Based on research by Roger Ibbotson, James Xiong , Robert P. Kreitler , Charles F. Kreitler , and Peng Chen . Financial Planning for Women October 14, 2009 Presented by Jean Lown , Ph.D. PPT Design by Diana Burk. Upcoming FPW .
Based on research by Roger Ibbotson, James Xiong,
Robert P. Kreitler, Charles F.
Kreitler, and Peng Chen
Financial Planning for Women
October 14, 2009
Presented by Jean Lown, Ph.D.
PPT Design by Diana Burk
FPW survey via e-mail
All about Individual Retirement Accounts &
Why switch from a traditional to a Roth IRA
“Provides guidelines that
individuals of different
ages, incomes, and
accumulated wealth can
easily apply in
how much to save for
an adequate retirement.”
pre-retirement gross income: yearly income before subtracting any deductions
pre-retirement net income: gross income minus the amount saved for retirement each year during pre-retirement
savings: stocks, mutual funds, bonds, CDs, IRAs, savings accounts
% of pre-retirement income: post-retirement replacement income (calculated at 80% and 60%)
The amount needed for retirement savings is calculated based on pre-retirement net income rather than gross income
A 35 year old with gross income of $80,000 needs to save 16.4% or $13,120, leaving net income of $66,880.
However, if already saved $100,000, then deduct 10 x 0.43% = 4.3% so that should save 16.4% - 4.3% = 12.1%, each year until retirement.
Retirees report health care costs at least as much, if not more, than expected
40% of retirees have spent more on health care than they expected
National Savings rate guidelines for individuals
Email survey of FPW participants coming soon
Nov. 11: All about IRAs and why switch to a Roth
December: No program
Reminder: check the FPW website www.usu.edu/fpw
PPTs posted on the web