Retirement

Question 1

4 plans that allow salary deferrals

Answer 1

1.401k
2.403b
3. 457
4.SIMPLE

(And SARSEP but doesn’t really count cuz it’s grandfathered)

Question 2

Retirement Needs income calculation

Answer 2

1. PV= income needed in todays dollars
   N= years to retirement
   I= inflation
   =solve for FV
   looking to see how much you need a year in future dollars
2. N= years in retirement
   I= (1+return\ 1+inflation -1) X100
   PMT= FV calculated in step 1
   =solve for PV

Question 3

Retirement Needs income calculation

Answer 3

1. PV= income needed in todays dollars
   N= years to retirement
   I= inflation
   =solve for FV
   looking to see how much you need a year in future dollars
2. BEG mode
   N= years in retirement
   I= (1+return\ 1+inflation -1) X100
   PMT= FV calculated in step 1
   =solve for PV