Retirement calculator case studyfrom @dallasdoesmoney

Transcript

Look at a 43 year old who has $0 in the four zero one k right now. He is starting from complete scratch. He's an electrician right now. He's making $93,000 a year of income. His goal is to have $80,000 a year when he actually ends up retiring, and he is going to have about $33,000 a year from his Social Security. So we need to close that gap between 80,000 and $33,000 a year. 80 minus 33 is tier, and using the 4% rule, this means that we need about $1,175,000 by the time he actually retires in order to achieve that $80,000 a year of income goal. We're gonna calculate this using my retirement calculator. It's available at the link in my bio or just comment template down below, and I will send you a link for you to check it out. So you can see he's 43 years old. He wants to retire age 65. He makes $93,000 a year. He expects 2% inflationary raises every single year rank he's not currently investing anything rank he doesn't currently have any investments. So the very first thing that we're gonna do is we're gonna get his employer match. His employer matches 4% as long as he contributes 6%. So we're gonna put in six percent for him and 4% for his employer and see where that gets us right no. That puts us at $625,000 by age tier. And using the 4% tier, that puts us at about $25,000 a year. And remember, we need to better that $47,000 a year mark because then when we add 33,000 on social security, that gets us to the 80,000. Now like I said, we are just starting here with the employer match, the 6% and the 4%. There are still many other things that he can do and there are two things specifically that said he would like to try. The first one is investing about $200 a month into his Roth IRA. So if we add $200 a month into his Roth IRA, that now puts him at about $760,000 total assets by the age 65, which still is about $400,000 short short of where we need to be. The biggest lever that we're gonna have is that four zero one k contribution. And he said he's willing to go up to 12% with this number. So we're gonna type in what would happen if he put 12% to his four zero one k. That now puts him at $1,136,000 of total assets and $45,000 a year, which is only $2,000 short of where he needs to be. The other thing we can look at is his retirement age because right no, this is what he said is the maximum amount that he can invest total right now. Maybe that will change in the future, but right no, this is where we're at. But he did say he could push his retirement age to to 66, 67, maybe even 68. So let's just see what that looks like if we change this from 65 to 66. That puts him at 1,245,000. 67, which is a typical retirement age now, puts us at $1,360,000 and that gives him $54,000 a year using the 4% rule. If we add his $33,000 of social security, that puts him now at $87,000 a year of income. Like I said, comment template down below if you wanna check out this spreadsheet that I built and also if you wanna submit your own information for the next video, just visit the link in my bio and submit it completely free.