CALCULATE YOUR MOCK RETIREMENT INCOME

[Pages:4]CALCULATE YOUR MOCK RETIREMENT INCOME

Retirement, or financial independence as it's often called, requires practice. Figure out your projected retirement income below. This will be your guide when you begin to Mock Retirement.

What is your current net household income?

What is the projected value of your investments at your target retirement age?

$

$

5% 3% 5%

5%

25%

How old are you today?

Select your target retirement age.

(Need help calculating this number? Use our calculator at RetirementCalculator)

How much income will your investments produce in the first year of your retirement?

$

(We recommend using 4%. Multiply your projected investment value by 4%.)

5% 5%

10% 10%

How much Social Security

income will you have at this age?

$

CURRENT

GOAL

15%

12%

NHUEMYROBEU!ERRS

How much pension income

will you have at this age?

$

25 % HOUSING 15 % TRANSPORTATION

How much part-time

employment income will

$

you have at this age?

12 % GROCERIES/DINING 10 % SAVINGS 10 % UTILITIES + PHONE

Total of your income streams

(gross income)

$

Multiply by .75 (This simulates a

25% tax rate and creates your net $

monthly income.)

5 % CHARITY 5 % ENTERTAINMENT 5 % MEDICAL 5 % HOLIDAYS/GIFTS

This is your Mock Retirement income. You will now live at this income level for three months. We'll go over how to do this in Lesson 9: The Process

5 % CLOTHING 3 % MISC

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THE MOMENTUM METHOD WORKS, AND HERE'S HOW.

List out your debts from smallest balance to largest balance with the associated minimum payments. Start paying minimum payments on every single debt you have. Take all the extra money you used to pay towards each individual debt, along with the money you have freed-up through effective budgeting, and put all the money towards the debt with the lowest balance. Do this every month until the debt with the lowest balance is paid off. Once it's paid off, then move to the next lowest balance debt. This is your plan.

DEBT

BALANCE

MINIMUM PAYMENT

MMOEMTETHHNOETDUM

NEW MONTHLY PAYMENT

TOTALS

REDUCING SPENDING PRIOR TO RETIREMENT

What is the difference between your current work income and your Mock Retirement income?

Category Reduction needed Dining out Groceries

$

Take some time to consider how much you need to reduce spending in the following expense categories in order to reduce your current income to your Mock Retirement income. This exercise is very personal. You may not have room to adjust in some of the following categories, and you may be unwilling to adjust in certain categories. However, you need to find enough savings to make up for the difference in your current working household income and your Mock Retirement income.

Entertainment Travel Clothing Gifts Total

(must equal amount to the right)

ALL RIGHTS RESERVED PETE THE PLANNER? 2018

ROADBLOCK EVALUATOR

Understanding your exposure to the four primary roadblocks is very important to your retirement plan's success. Take some time too consider how each of the following roadblocks have affected or will affect your ability to retire.

CALCULATE YOUR NET WORTH

HOUSING

If you are a homeowner, will you be able to pay off your mortgage prior to retiring?

m YES m NO

If not, how many years will you carry a mortgage into retirement?

Assisting adult children

Do you currently provide financial assistance of any type to your adult children or grandchildren?

m YES m NO

If so, how much money do you spend per month in assistance?

Subtract the debt from the assets. This is your net worth. It may be positive. It may be negative. Your goal is to make it go in the right direction. You can do this by paying down debt. You can do this by saving money. Or you can do this by doing both. Do both.

Do you plan to move again? m YES m NO

If so, do you plan on obtaining a new mortgage? m YES m NO

Children's Education

Did you pay for your children's education? m YES m NO

$

Have you co-signed on any loans for your children? m YES m NO

HEALTHCARE

Do you plan to retire prior to age 65? m YES m NO

If you do plan to retire prior to age 65, do you have a budget in place for health insurance? m YES m NO

WHAT'S YOUR ASSET TOTAL? WHAT'S YOUR DEBT TOTAL?

NET WORTH

Do you have any student loan obligations resulting from your children's education?

m YES m NO

Do you have any medical conditions that require unusually expensive care that insurance doesn't pay for?

m YES m NO

ALL RIGHTS RESERVED PETE THE PLANNER? 2018

STTAKUGEDONEOONTDETSS

ALL RIGHTS RESERVED PETE THE PLANNER? 2018

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