you will determine how much you need to save every month for retirement. You will first determine when you wish to retire and how much money you will need to have saved up. You will use these values, along with a realistic (researched) rate of return for retirement funds, to complete a savings annuity calculation in order to determine how much you will need to save each month. You must complete a retirement annuity calculation and include your calculated monthly retirement contribution in your budget as part of your project.

Before you can determine how much to set aside each month for retirement, you first need to anticipate how much money you will need to retire on. Of course, this depends on many things, including the age you want to retire at. r What age would you like to retire? r How much money will you need to retire on? This can be a complicated decision. One option is to use the following guideline recommended by Fidelty: have 10 times your annual salary saved by the time you turn 67 (Napoletano). We saw in the class activities that inflation causes money to be worth less as time goes on. To account for this, you will need to adjust your starting salary for inflation. You can use the compound interest formula and a reasonable inflation rate to determine what your inflation-adjusted salary will be when you turn 67. If you use this guidance, be sure to check out the Fidelity article and include the citation in your paper. r You may choose to not use the Fidelity guideline to determine how much you need to retire on. If you choose a different method, you will need to carefully research and justify the method and reasoning you use. r If you plan to retire significantly earlier or later than 67, you will need to do some additional research to determine how much money you will need. RESEARCH: Citations are required for this section. r Research an inflation rate to determine what your inflation-adjusted salary will be when you turn 67. Hint: you could research "target" inflation rates or use a historical average. r If you plan to retire significantly earlier or later than 67, you need to research how much money you need in your retirement account. r Research a typical rate of return for a retirement fund. Please include an introduction and conclusion.

Salary Information
Initial Salary, PO:	$52,650.00
Average Inflation Rate, r (decimal):	0.025
Number of Compounding Periods per Year, k:	1
Number of Years, N:	27
Future Salary
Number of years, N	Future Value, PN
27	$102,551.67

$102,551.67 x 20years= $2,051,033.67 Retirement Annuity Calculator
Monthly Deposit Needed
Retirement Annuity Information
Value of Annuity after Nyears PN:	$2,051,033.67
Annual Interest Rate, r(decimal) :	0.053
Age at Time of Initial Investment :	38
Age at time of Anticipated Retirement :	65
Regular Monthly Deposit Calculator for Retirement Annuity
Number of years investing, N	Age after N Years (i.e.: Retirement Age)	Regular Monthly Deposit, d
27	65	$2,857.90