Project your Social Security benefits on the organization's website. Many retirement plans suggest that you should create a lump sum of cash to generate enough interest income equal to about 80% of your current income. Calculate how much money you would have to save each month from now until retirement in order to achieve a lump sum large enough to yield interest income equal to 80% of your current income. How much would you need to save each month? Let's discuss this. If you would like some help with the time value of money calculations, Excel can be a very handy tool.

 

My current annual income is $153,000.00 and I put $400.00 into the Thrift Savings plan with an expected average return of 9.94%. I have been doing this for 10 years and plan to continue for the next 15 years. Put this into an excel spreadsheet.