You will graduate in a few years and start working and it?s never too early to start
Question:
You will graduate in a few years and start working and it?s never too early to start planning for your retirement and other major financial events. Let?s fast forward to the beginning of your career. Here?s some assumptions to help you get started.
Your starting annual salary will be $70,000.
You plan to work for 42 years before retiring. You expect your salary to grow at an annual average rate of 4% after year 1 on the job.
When you retire you want a 21-year retirement annuity that begins 42 years from today with an equal annual payment equal to 80% of your final working year salary. Assume the first retirement annuity payment would occur immediately upon retirement 42 years from today. You realize your purchasing power will decrease over time during retirement.
Assume any retirement fund savings will earn an 8% compounded annually before and after retirement
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn