EGR 403 Introduction to Retirement PlanningDisclaimerVariables to Determine How Much You Need to Live OnBasic Retirement CFDWhere to Start?Our Approach1EGR 403 Retirement Planning - Part IEGR 403 Introduction to Retirement Planning•Part I - Basic Approach•Part II - Determine Total Capital to Invest•Part III - Saving Strategy•Part IV - Investment StrategyClick here for streaming audio to accompany presentationDr. Phillip R. RosenkrantzIME Department, Cal Poly PomonaEGR 403 Retirement Planning - Part I2Disclaimer•This class project is not intended to replace the advice and counsel of licensed financial planners. It is primarily a class exercise to illustrate the concepts of EGR 403.The approach used is based largely on the book: “How to Retire Early and Live Well (with less than $1,000,000)” by Gillette EdmundsEGR 403 Retirement Planning - Part I3Variables to Determine How Much You Need to Live On •Total Expenses per year•Total Capital to invest•Future increases in expenses•Estimated rate(s) of inflation•Investment management fees•Annual total return from investmentsEGR 403 Retirement Planning - Part I4Basic Retirement CFDEGR 403 Retirement Planning - Part I5Where to Start?•How much, in today’s dollars, will you need to retire in the manner you desire?•When would you like to retire?•Will you have any pension fund or part-time income at that time?•What inflation rate do you want to use?•What kind of an investment manager are you?EGR 403 Retirement Planning - Part I6Our Approach•Figure out how much you want to have at retirement, then•Work backwards to determine how much you need to save starting now.•Analyze the impact of changes in your assumptions (sensitivity
View Full Document
Unlocking...