QA: Retire on $3,000 a year?QA. I'm 37 years old, just started my retirement plan, and need to know how much I will have when I retire, I'm saving 5% of my earnings biweekly bi·week·ly adj. 1. Happening every two weeks. 2. Happening twice a week; semiweekly. n. pl. bi·week·lies A publication issued every two weeks. adv. 1. Every two weeks. . What percentage do I need to contribute to save $3,000 a year? --M. Hall Via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the For 2005, the law allows you to save as much as $14,000 in a 401(k) or 403(b) retirement savings plan Noun 1. retirement savings plan - a plan for setting aside money to be spent after retirement pension account, pension plan, retirement account, retirement plan, retirement program, retirement savings account , But if your savings goal is $3,000 a year, saving a percentage of your salary won't be your main concern. To meet your goal, you'll need to save $115.39 from each biweekly pay period. To project what saving $3,000 a year could yield for your retirement, we went to FundAdvice.com and used one of its investing calculators (www.fundadvice.com/tools/calcu lators/). Using the Amount Saved Calculator calculator or calculating machine, device for performing numerical computations; it may be mechanical, electromechanical, or electronic. The electronic computer is also a calculator but performs other functions as well. , we came up with the following: If you plan to save $3,000 a year until you retire in another 30 years at age 67, and your investments earn 7% interest per year, you could expect to have $295,330.87 upon retirement. That probably will not be enough for you to live comfortably on in 2035. To find out how much you will actually need to retire, use the retirement calculator at www.retirementplan. about.com, into which you should enter your current salary, projected raises, and number of years until you plan to retire. This will give you a better idea about what you'll need in order to live comfortably upon retirement. --Matthew S. Scott Mail your money management questions to Ask B.E., BLACK ENTERPRISE 130 Fifth Ave AVE Avenue AVE Average AVE Alta Velocidad Espanola (train between Madrid and Seville) AVE Alta Velocidad Española (Spanish: High Speed Train) AVE Audio Video Entertainment AVE Advertising Value Equivalent ., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011 or send an e-mail to scott@blackenterprise.com |
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