Back to Assignment Keep the Highest / 1 3. Estimating retirement savings goals in today's dollars Saving Today for Retirement Tomorrow Crystal Malik is a 25-year-old software engineer earning $30,000 per year. Crystal wants to retire in 40 years when she is 65. Crystal expects to live for 20 more years after she retires. Crystal also expects her expenses to be about the same as they are now after she retires. She estimates that along with her other sources of income and assets, by then, 100% of her current Income will be necessary to support the lifestyle she desires. Crystal saves and invests but is pretty sure she should be saving more now to meet tomorrow's retirement goals. Using this information and the Information in the following tables, complete the worksheet to determine if Crystal's current plan will enable her to reach her goals. Assume a 5% return and growth rate (adjusted for inflation) on all savings and investments. Round your answers to the nearest dollar. Enter rero () in any rows for which there is no floure. Any Social Security retirement benefits or pension payments are annual amounts. Savings & Investments - Current Balances Amounts that Crystal already has available in today's dollars: Employer savings plans: $2,000 TRAS and Keoghs: 50 Other Investments: $3,000 Home equity (net of possible replacement with new home after retiring): $0 Savings & Investments - Current Contributions Crystal se orlovests $300 per year Other Income According to Crystal's most current Social Security statement, her estimated monthly Social Security retirement benefit in today's dollars is $1,200. Crystal's employer does not offer a pension plan. Crystal is enrolled in an employer-sponsored retirement plan Interest Factors - Future Value of a Single Amount Interest Factors - Future Value of an Annuity Interest Factors - Present Value of an Annuity Years 5% 10 11 12 13 14 15 29 39 44 1.2190 1.3439 1.4802 1.6289 1.2434 1.3842 1.5395 1.7103 1.2682 14258 1.6010 1.7959 1.2936 1.4655 1.6651 1.8856 1.3195 1.5126 1.7312 1.9799 1.3459 1.5580 1.8009 2.0789 1.2728 1.6047 1.8730 2.1829 1:4002 1.6520 1.9470 2.2920 1.4280 1.7024 2.0258 2.4000 14568 1.7535 2.1060 2.5270 1.4859 1.8061 2.1911 2.6533 1.0114 2.4273 3.2434 4.3219 2.2000 3.2020 4.0010 7.0400 16 17 18 19 20 30 40 1 Crystal Halik's Numbers $ 2. 5 3. 5 Annual income needed at retirement in today's dollars. Estimated Social Security retirement benefit In today's dollars. Estimated employer pension benefit in today's dollars. Total estimated retirement Income from Social Security and employer pension in today's dollars Additional income needed at retirement in today's dollars. Amount stal must have attirement in today's dollars to receive additional annual 5 0 57 Crystal Malik's Numbers 4. 6. 1. Annual income needed at retirement in today's dollars. 2 Estimated Social Security retirement benefit in today's dollars. 3. Estimated employer pension benefit in today's dollars. Total estimated retirement income from Social Security and employer pension in today's dollars 5. Additional income needed at retirement in today's dollars. Amount Crystal must have at retirement in today's dollars to receive additional annual income in retirement 7. Amount already available as savings and investments in today's dollars. A. Employer savings plans (such as 401(K), SEP-IRA, profit-sharing) B. IRAs and Keoghs C. Other investments, such as mutual funds, stocks, bonds, real estate, and other as available for retirement D. Portion of current home equity considered savings, net of cost to replace current home with another home after retirement (optional) Total A through Puture value of current savings/investments at time of retirement Motional retirement savings and Investments needed at time of retirement no savings needed to reach amount in line 9) before retirement Current al contribution to savings and investment plans 5 . 10 11 12 Adonat amount of sonual savings that Crystal needs to set aside in today's dollars to chevertement goal in line 1). Back to Assignment Keep the Highest / 1 3. Estimating retirement savings goals in today's dollars Saving Today for Retirement Tomorrow Crystal Malik is a 25-year-old software engineer earning $30,000 per year. Crystal wants to retire in 40 years when she is 65. Crystal expects to live for 20 more years after she retires. Crystal also expects her expenses to be about the same as they are now after she retires. She estimates that along with her other sources of income and assets, by then, 100% of her current Income will be necessary to support the lifestyle she desires. Crystal saves and invests but is pretty sure she should be saving more now to meet tomorrow's retirement goals. Using this information and the Information in the following tables, complete the worksheet to determine if Crystal's current plan will enable her to reach her goals. Assume a 5% return and growth rate (adjusted for inflation) on all savings and investments. Round your answers to the nearest dollar. Enter rero () in any rows for which there is no floure. Any Social Security retirement benefits or pension payments are annual amounts. Savings & Investments - Current Balances Amounts that Crystal already has available in today's dollars: Employer savings plans: $2,000 TRAS and Keoghs: 50 Other Investments: $3,000 Home equity (net of possible replacement with new home after retiring): $0 Savings & Investments - Current Contributions Crystal se orlovests $300 per year Other Income According to Crystal's most current Social Security statement, her estimated monthly Social Security retirement benefit in today's dollars is $1,200. Crystal's employer does not offer a pension plan. Crystal is enrolled in an employer-sponsored retirement plan Interest Factors - Future Value of a Single Amount Interest Factors - Future Value of an Annuity Interest Factors - Present Value of an Annuity Years 5% 10 11 12 13 14 15 29 39 44 1.2190 1.3439 1.4802 1.6289 1.2434 1.3842 1.5395 1.7103 1.2682 14258 1.6010 1.7959 1.2936 1.4655 1.6651 1.8856 1.3195 1.5126 1.7312 1.9799 1.3459 1.5580 1.8009 2.0789 1.2728 1.6047 1.8730 2.1829 1:4002 1.6520 1.9470 2.2920 1.4280 1.7024 2.0258 2.4000 14568 1.7535 2.1060 2.5270 1.4859 1.8061 2.1911 2.6533 1.0114 2.4273 3.2434 4.3219 2.2000 3.2020 4.0010 7.0400 16 17 18 19 20 30 40 1 Crystal Halik's Numbers $ 2. 5 3. 5 Annual income needed at retirement in today's dollars. Estimated Social Security retirement benefit In today's dollars. Estimated employer pension benefit in today's dollars. Total estimated retirement Income from Social Security and employer pension in today's dollars Additional income needed at retirement in today's dollars. Amount stal must have attirement in today's dollars to receive additional annual 5 0 57 Crystal Malik's Numbers 4. 6. 1. Annual income needed at retirement in today's dollars. 2 Estimated Social Security retirement benefit in today's dollars. 3. Estimated employer pension benefit in today's dollars. Total estimated retirement income from Social Security and employer pension in today's dollars 5. Additional income needed at retirement in today's dollars. Amount Crystal must have at retirement in today's dollars to receive additional annual income in retirement 7. Amount already available as savings and investments in today's dollars. A. Employer savings plans (such as 401(K), SEP-IRA, profit-sharing) B. IRAs and Keoghs C. Other investments, such as mutual funds, stocks, bonds, real estate, and other as available for retirement D. Portion of current home equity considered savings, net of cost to replace current home with another home after retirement (optional) Total A through Puture value of current savings/investments at time of retirement Motional retirement savings and Investments needed at time of retirement no savings needed to reach amount in line 9) before retirement Current al contribution to savings and investment plans 5 . 10 11 12 Adonat amount of sonual savings that Crystal needs to set aside in today's dollars to chevertement goal in line 1)