Given Parameters:

Tim's Current Age 37

Beginning Saving $ 259,000
Annual return on savings 4%
Annual Salary $ 145,000
Annual raise rate 2%
percentage of salary contributed 6%
Expected Retirement Age 65
Annual Expense After Retirement $ 90,000
Rate of Return after retirement 3%
Post Retirement Tax Rate 15%
Employer Contribution Rate 6%
Additional Annual Contribution $ 6,000
Inflation Rate 2%
Years until Retirement 28
Annual Expense by First Year of Retirement $ 156,692
Total Savings by Retirement: $ 1,104,199
 Pre-Retirement
Year # salary Contribution Employer Contribution
1 $ 145,000 $ 8,700 $ 8,700
2 $ 147,900 $ 8,874 $ 8,874
3 $ 150,858 $ 9,051 $ 9,051
4 $ 153,875 $ 9,233 $ 9,233
5 $ 156,953 $ 9,417 $ 9,417
6 $ 160,092 $ 9,606 $ 9,606
7 $ 163,294 $ 9,798 $ 9,798
8 $ 166,559 $ 9,994 $ 9,994
9 $ 169,891 $ 10,193 $ 10,193
10 $ 173,288 $ 10,397 $ 10,397
11 $ 176,754 $ 10,605 $ 10,605
12 $ 180,289 $ 10,817 $ 10,817
13 $ 183,895 $ 11,034 $ 11,034
14 $ 187,573 $ 11,254 $ 11,254
15 $ 191,324 $ 11,479 $ 11,479
16 $ 195,151 $ 11,709 $ 11,709
17 $ 199,054 $ 11,943 $ 11,943
18 $ 203,035 $ 12,182 $ 12,182
19 $ 207,096 $ 12,426 $ 12,426
20 $ 211,238 $ 12,674 $ 12,674
21 $ 215,462 $ 12,928 $ 12,928
22 $ 219,772 $ 13,186 $ 13,186
23 $ 224,167 $ 13,450 $ 13,450
24 $ 228,650 $ 13,719 $ 13,719
25 $ 233,223 $ 13,993 $ 13,993
26 $ 237,888 $ 14,273 $ 14,273
27 $ 242,646 $ 14,559 $ 14,559
28 $ 247,499 $ 14,850 $ 14,850

Post-Retirement
Year # After Retirement Annual post-ret. exp. growth of inv. Post-ret. growth of inv. post-tax
1 $ 159,826 $ 33,126 $ 28,157
2 $ 163,023 $ 29,176 $ 24,800
3 $ 166,283 $ 25,029 $ 21,275
4 $ 169,609 $ 20,679 $ 17,577
5 $ 173,001 $ 16,118 $ 13,700
6 $ 176,461 $ 11,339 $ 9,638
7 $ 179,990 $ 6,334 $ 5,384
8 $ 183,590 $ 1,096 $ 932
additional contribution
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
$ 6,000
investment
$ 972,530
$ 834,307
$ 689,299
$ 537,267
$ 377,966
$ 211,144
$ 36,538
$ (146,120)
Investment
$ 283,336
$ 308,034
$ 333,101
$ 358,545
$ 384,372
$ 410,592
$ 437,211
$ 464,237
$ 491,680
$ 519,546
$ 547,845
$ 576,585
$ 605,775
$ 635,424
$ 665,542
$ 696,137
$ 727,218
$ 758,797
$ 790,883
$ 823,485
$ 856,615
$ 890,282
$ 924,498
$ 959,274
$ 994,620
$ 1,030,549
$ 1,067,071
$ 1,104,199
Expense Inflation pre-retirement
$ 91,800
$ 93,636
$ 95,509
$ 97,419
$ 99,367
$ 101,355
$ 103,382
$ 105,449
$ 107,558
$ 109,709
$ 111,904
$ 114,142
$ 116,425
$ 118,753
$ 121,128
$ 123,551
$ 126,022
$ 128,542
$ 131,113
$ 133,735
$ 136,410
$ 139,138
$ 141,921
$ 144,759
$ 147,655
$ 150,608
$ 153,620
$ 156,692
Amount Saved by Retirement: $ 1,104,199
In order to maximize the investment you may want to consider Growth of Investment U
increasing the annual tax free contribution (as soon as possible)
in order to get the most out of the contribution itself and acquire $1,200,000
as much interest as possible.

$900,000

Investment Amount ($)

$600,000

$300,000

$-
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Year #

Years Investment Lasts Post-Retirement 7

In order to make this investment last, you should consider Decline of Investment P
attempting to reduce annual expenses. Inflation has made the
post-retirement expense particularly steep; cutting back on $1,200,000
annual expenses should make this investment last significantly
$1,000,000
longer.
$800,000
Investment Amount ($)

$600,000

$400,000

$200,000

$-
1 2 3 4
$(200,000)

$(400,000)
YEar #
h of Investment Until Reti rement

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Year #

ne of Investment Post-Reti rement

2 3 4 5 6 7 8

YEar #