Retirement Income Calculator

This article is in regards to retirement income and retirement modeling. Many people rely on retirement calculators to model their retirement income strategy and determine the possibility of success (success being defined as an income that lasts for the life of the individual receiving it).

A retirement model can be simple or very complex. A simple model would project the income stream based on an average return. This means that each year the return would be assumed to the same! If you are invested in risky asset classes such as stocks, mutual funds, ETFs, and other instuments (that can go up and down by the minute), you cannot rely on a simple model. It would not come close to reflecting reality.

You would need a model that can simulate changes in market value. One method of doing this is called Monte Carlo Analysis. Monte Carlo Analysis is a system that requires random number generation. Luckily, with the advent of the modern computer, this is not a problem. There are all sorts of calulators available that rely on Monte Carlo simulation, and you can even build one in a spreadsheet.

Next, you need a model to test.In the case of a retirement calculator, your model might consist of a hypothetical sum of money that is invested, and subject to an ever-changing market return (this is where the random number generatorcomes in handy). Also, you would have a hypothetical number of withdrawals that are subtracted from the balance over time.

Because of therandom number generator, every time that the calculator is run, the results would be different. Because of this, the calculator needs to be run thousands of times, the results recorded, and then aggregated, to determine the probability of success.

Frequently Asked Questions

QUESTION:
does yahoo have a retirement calculator that includes both fix income from pensions and 401k saving?
- ANSWER:
  you could type how to calculate money into yahoo — i know they have a lot of formulas – not sure if the one you are looking for is there!!!
QUESTION:
Is there a retirement calculator that includes a husband and wife’s financial information together?
In other words, allow for the difference in ages to collect social security and incomes.
- ANSWER:
  You should try www.suzeorman.com or themotleyfool.com for this kind of info about retirement, savings, and investment for the future.
QUESTION:
how can a middle aged person best reach a desired income for retirement other than company match 401k’s.?
I am looking to reach a goal of atleast greater than 500,000. dollars by age 55 and i am 36 yrs. of age now.I am kind of familiar with retirement calculators,but am confident that there are some individuals that were or are in my shoes that have found proven ways to do so,thanks.
- ANSWER:
  36 and you want 500 byt the time you are 55 in the bank?
  
  Very doable!!! Depending on what you make and what you spend currently.
  
  Step one max out the 401K
  
  Step 2 invest in equities until age 50, then start moving bits of your portfolio in to bonds.
  
  Step 3 don’t invest what you have left over every month. Decide how much you are investing ABOVE the 401K and do that first, discretion spending should be the “extra part of your budget”. Not the investing piece.
QUESTION:
When calculating annual income for retirement do you use annual income before taxes or after taxes.?
I notice that many online calculators don’t specify(before or after taxes) and I don’t know how that affects the formula.
- ANSWER:
  Nobody knows what taxes will be then, so current income and income then would be gross income. A good calculator will attempt to account for inflation and social security then. Likewise if it has input for current expenses it should figure the inflated cost of those expenses.
  
  For example I figured I could live on 80% of my income because I am contributing 22% of my gross income to my 401(k). But allowing for inflation, 10 years from I may need the same dollars plus social security to equal the dollars I am living on now. And I will need more per year if I am still around 20-25 years later.
QUESTION:
i just opened a 401k in oct and have a retirement plan. do these count as ‘taxable interest income?’ help!
i am trying to file 2007 taxes and i don’t think that 401k’s and retirement plans are taxable but i tried using some tax calculators and they were asking me if i had a 401k etc so i got confused. this is the first year that i have a 401k…
- ANSWER:
  The reason your “tax calculators” asked about your 401k and other retirement account contributions is because you may qualify for a retirement contribution CREDIT, which will lower your overall tax burden.
  
  If you make any early withdrawals, aka distributions, from your 401k/IRA and don’t roll that amount over into another qualifying retirement account within 60 days (I believe that’s the max time period), you’ll have to pay a ‘penalty’ tax of 10% on that withdrawal/distribution.
QUESTION:
How much should we be saving for retirement?
My husband only works, I am a stay at home mother of four children ( I worked for 8 years as a lab manager before having children). How much should we be saving for retirement? He is 35 years old, I am 36 years old. We currently max out his 401K at 15% of his pre-tax salary. We also save 10% post tax into an annuity type account (life insurance also). When I use retirement calculators, they usually say we should be saving only 5% of our pre-tax income actually since we started at age 26 or so, but I believe that this is only for 1 person, and we are actually saving for both of us. The Yahoo retirement calculator says we should have ,000,000 in all based on 8% return. Should this be ,000,000 instead for 2? We have no debt except for a ,000 mortgage with 9 years left. None of our friends or family save as much as we do, but are we really going overboard here with savings? Or is it better to save as much as we can now and ease up later when our children are in college?
I guess I actually have two questions: With the retirerement calculators, they ask if you are married and if your spouse has any income, but are the totals for one person or two? Also, is a total savings rate of 25% totally off the mark (too much)? My husband thinks we are saving too much, I am very conservative!
Thanks so far for all the answers. With all of our savings as is, and 4 young children with 1 income only, we really have no “disposable”spending money. Is cutting back to 10% for his 401K a good idea? Would our retirement still be “on course” for both of us? We never eat out, have not gone on vacation since we were married 10 years ago, his car is 9 years old and we would need to buy a new one soon, etc. He thinks we need to enjoy our lives now a bit more. We do also fund an HSA with about 4% pretax also each month! But we have no separate college savings plan yet.
I thought that 529 plans only had state tax benefits, not federal currently?
- ANSWER:
  The amount you need to have accumulated at retirement is dependent on how much you’ll need to live on in retirement, plus factors like estimated return, estimated tax bracket and estimated life span.
  
  Most retirement calculators either (a) ask you what to use for “needed income”, or (b) assume that if you are living on $X income now, you’ll need 85% (or 90%, or whatever) percent of that income to live on in retirement. Hopefully they’ll spell out how that “needed income” is derived somewhere in the tool documentation or help.
  
  So the income requirement will be for all people who are currently living on the income that is put into the calculator, in almost all cases. (I.e., you very probably don’t need to double it.)
  
  Since the vast majority of people are saving too little for retirement, you are to be congratulated if you really are saving too much. But that doesn’t necessarily mean you should cut back on saving — it will give you more of a cushion for unexpected events (sickness, layoffs, etc.) and enable you to have a trouble-free, worry-free retirement. And that’s a goal worth pursuing.
  
  If you continue saving at your rate, it does mean that if you hit a stretch where expenses rise or income falls, you could more easily think about temporarily suspending retirement savings, as in your mention of children going to college.
  
  Congratulations.
QUESTION:
Is ther a simple on-line calculator to figure out if going back to school is worthwhile?
I am not sure about going back to school. I already get paid well. I need to know if it would be worth it to back to school. I would loose income, pay for school, loose income on money I could’ve saved in retirement funds, etc.
- ANSWER:
  No. There isn’t. Because not only are the economic factors far from being certain, but there’s a lot more than economics involved. If you’re doing something you love to do and haven’t been to school, unless there’s something you’d rather be doing, why leave? Going to school is far more than simply improving your economic potential. It’s a major change in lifestyle, and at best, a step towards doing something that you love.
  
  As far as the money goes, on average, a person with a college degree makes about 2/3 more than a person who does not, but that’s an average, and your mileage may and will vary. You can’t simply plug numbers into a calculator and find out whether you’ll come out in the black. As a general rule of thumb, yes, you probably will, but there are certainly no guarantees, and you can’t come up with a dollar figure.
  
  As far as monies that could have been saved and invested, any money you’d make in four years on investment income isn’t really going to matter unless you’ve already got more than 0,000 saved. But if you’ve got that saved, you’ve already got a great job.
QUESTION:
Would buying rental property help fund my retirement?
I am young(ish), just married, just bought our first home last year. Now I have to think about all sorts of boring grown-up stuff like retirement. Whoopee!

Anyways, I’ve been playing around with retirement calculators and from what I can tell, we would need to set aside what seems like a huge amount every month to comfortably fund our retirement once you adjust for inflation, assuming we’re both going to retire at 65 and live a long, long time.

I’m wondering if we should be thinking about buying rental property in the near future. It may not generate a lot of cash flow for now, but if we do it soon, a rental property (or properties) would be paid off by the time we retire, and that would be mortgage-free monthly income… right?

I work for a property management company so I know all about landlord woes… and if the cash flow allowed, I would just let a management company handle my hassles for me.

Is it wise to spend money on rental property instead of just dumping into a retirement fund?
- ANSWER:
  First let me start off by saying that their is nothing wrong with buying income producing property. In addition to the tax breaks and write off’s it is possible to get to retirement and enjoy a stream of income from this property(ies). Alternatively, you could also get a stream of income from a portfolio of dividend producing stocks and bond interest payments. Since you work for a property management co. and are very familiar with the landlord woes, the question than becomes which of these two avenues do you want to walk down. Maybe if your resources allow it, you could do both? Neither one will be without any hassles. Good luck with your tough decision, at least you have recognized the importance of saving for retirement at such a young age which seems to elude so many people.
QUESTION:
Why did Retirement pension tax With-holding change?
I do not work so I do not have earned income as defined by IRS. I am concerned that because they are taking out less money from each pension check that I will have to pay a penalty at the end o the year. I tried to use the Tax calculator but that also forces you to say that you worked at least one job. So it is no help to me at all. Can you help?
- ANSWER:
  Make sure the deduction allowances are the same as your W4 when you were an active worker, and you should be just fine…
QUESTION:
Isn’t .3 Million a bit much to say I need for retirement?
ING Direct has a marketing campaign about “What’s your number”…then Kiplinger and Fidelity also have “retirement planning” calculators on their websites too. So I punched in the numbers… how much we want to live off of… we said 70% of our current income. How long will we live in retirement – I say 35 years since the old bastards in our family live to like 90 with out any health problems. WTF, my number says .3 million. How the hell am I going to save that? I’m already saving 00 a month and I can’t save anymore. These companies are full of crack! Most people out there can’t spare to save 0 a month and these damn calculators are telling me I need to save 0 more per month so I don’t “come up short” ???????? I’ll be working for several decades more, at this rate, you’d think we’d have enough by then?????
- ANSWER:
  Many retirement planning numbers assume more pessimistic conditions than one would normally do. Their purpose is to scare you into saving more, hopefully with their company.
  
  The number also depends on the inflation rate, plus the ROI of your savings.
  
  It does seem a trifle large, that 4.3 Million number. I would review my assumptions and re-calculate.
  
  Did you allow for Social Security? ( now that may be a leap of faith, but let’s all hope it’s there when we reach that age ).
QUESTION:
How much will I get back in taxes or will I have to pay?
I am curious to know what an approx. refund will be. I claim zero dependants my total income before taxes last year was ,564.19. I had some pre-tax dedcutions including retirement and health care. Federal taxes taken out where ,122.95 and state deductions where ,491.10. I do have seperate money in IRAs and money markets so I am not sure how that will play in. When I use an online calculator it says I owe, I have also put in my info from last year and it said I owed money. However last year I got a refund. So just curious if you have any idea.
- ANSWER:
  If you claimed zero all year and you claim 1 (yourself ) when you do your taxes i don’t think that you will have to pay, Because you had so much taken out of your pay all year they will owe you.
QUESTION:
Another social security question!?
I am 56. I would like to work to age 70. The social security calculator and my ING retirement calculator say I will have a combined annual income of ,000 per year, at age 70. Sounds like a LOT now, but years later, will ,000 be worth enough?
Only bills I will have will be food, property taxes, etc. No mortgage, etc. Normal daily life stuff. No expensive hobbies.

What do you all think?
- ANSWER:
  Lets assume for a moment that you live to be 120 years old. See the Social Security Life Expectancy Table link below. The table goes up to age 120.
  
  And in case you are wondering whether you can make it to 120, remember that many people live to over a hundred. And there’s a woman named Jeanne Louise Calment who lived to 122. She died in 1997. So it can be done. See a short biography of her at the link below.
  
  Well, assuming you retire at age 70 and live to 120, you would have a 50-year retirement. Wish you all the luck. My current plan is to make it to at least 100. We’ll see how it goes as the years slip by.
  
  But the question is whether you could make it financially for another 50 years if you started out your retiement at age 70 with a ,000 income. I believe the answer is yes. And if you have doubts about that, consider this. According to the Social Security Administration’s COLA History Table (see link below), the average annual cost of living adjustment people have been receiving over the past 34 years is a pinch under 4.5%. If that percentage is accurate, and I trust them more than anyone else, then what would it cost for stuff 50 years from now? To give you an idea, let me tell you that a loaf of bread that you could buy for .00 today, would cost you .03 in another 50 years. That’s based on an average increase of 4.5% per year over 50 years. The thought of that will make many people shake in their boots. But, in my humble opinion, it’s really nothing to worry about. And incidentally, to figure out that .03 number with a scientific calculator, you simply key in 1.00(1.045)^50 and push the execute key to get the answer. With a regular (non-scientific one) you key in 1.00 and multiply it by 1.045 fifty times.
  
  Now, why do I think that having to pay nine bucks for a loaf of bread 50 years from now is nothing to worry about? Well it’s because your income will increase by and average of 4.5% per year too. It’s the same old stuff; life will go on then just as in goes on today, but with bigger numbers. The cost of your bread will be nine time more, but your income will be nine times more too. Your ,000 will then be 1,631.81 and the way to calculate that is 50,000(1.045)^50 on a scientific calculator. On a regular calculator, it’s 50,000 x 1.045 repeating the times 1.045 fifty times.
  
  But this doesn’t mean there won’t be some scary times. We could experience periods of only 1% increase in income, but 4% increases in cost of living, but over time, it will all averages out. If it hadn’t over years past, people wouldn’t have been able to survive.
QUESTION:
Retirees: How much money have you given yourself to live off of, and are you satisfied?
I know there are a million online calculators for this stuff but I’d like real-person opinions.

If you are retired – what age did you retire at, how much annual income did you allocate, and what level of “luxury” or lack there of has it given you? Just curious how my retirement plan compares to reality….
- ANSWER:
  You are going to get such a broad array of answers on this one. There is no one “ideal” retirement amount. One person may want 0,000 per year because they want to travel the world. Another may only allocate ,000 because they have paid off all of their expenses and want to just hang loose.
  
  Are you worried you haven’t saved enough?
QUESTION:
I just want to check these arrows are pointing to the answer i would appreciate this ty?
1. If you have earned income, which of the following retirement devices must you contribute to, by law?
A. Pension plan
B. IRA
C. Social security (FICA)<<<<<
D. Vesting plan

2. Car insurance that pays for your injuries when you're in an accident in your car is _______.
A. comprehensive
B. liability
C. medical<<<<<<<
D. collision

3. Jane Marko buys a car for ,400.00. In three years, the car depreciates 48% in value. How much is the car worth in three years?
A. ,800.00
B. ,788.00
C. ,472.00<<<<<<<
D. ,928.00

4. Which of the following devices imparts ownership in a corporation?
A. Stock<<<<<<<
B. Bond
C. Savings account
D. U.S. Treasury Bill

5. Ray Cupple bought a basic car costing ,150.00, with options costing 8.00. There is a 6% sales tax in his state and a combined .00 license and registration fee. What was Ray's total cost?
A. ,938.00
B. ,541.28
C. ,547.00
D. ,591.28<<<<<<<<

6. The Hamilton Brush Company issued 2,500 shares of common stock worth 0,000.00 total. What is the par value of each share?
A. .00<<<<<<<<
B. .00
C. 0.00
D. 0.00

7. Which of the following is intended primarily to enhance a person's tax advantage and retirement income?
A. U.S. Savings Bond
B. Growth fund
C. Money market fund
D. IRA<<<<<<<<<<<

8. A share of stock in the Bree Medical Supply Company is quoted at 35 1/4 . Suppose you hold 20 shares of that stock, which you bought at 31 1/2. If you sold your stock at 35 1/4, which of the following would be true?
A. You made a profit of .00.<<<<<<<<<
B. You suffered a loss of .00.
C. You made a profit of 5.00.
D. You suffered a loss of 0.00.

9. What is the first step that a smart new-car buyer should take before talking to salespersons and putting a deposit on a car?
A. Shop around for a car loan.
B. Obtain car insurance.
C. Study the car market.<<<<<<<
D. Test-drive the car.

10. Jane has a checkbook balance of .00. She then writes two checks, one for .00 and one for .50. She also deposits .00. She then uses her calculator to determine her new balance. Which of the following is the correct series of keys she should press?
A. 6 8 + 7 5 - 5 - 6 2 . 5 0
B. ON/C 6 8 - 5 - 6 2 . 5 0 + 7 5 =<<<<<<<
C. 6 8 + 7 5 - 6 2 5 0 - 5 =
D. ON/C 6 8 + 7 5 = 5 = 6 2 . 5 0

11. The Emerson First National Bank is lending you money to buy a new car. The loan agreement will probably state that you must carry _______ insurance.
A. liability
B. collision
C. no-fault<<<<<<<<<<<<
D. medical

12. On which of the following types of policies is it a certainty that the insurance company will have to make payment? (We have assumed that the policy has been kept current, payments have been made, and the insurance company remains in business.)
A. Life insurance<<<<<<<<<<<
B. Comprehensive car insurance
C. Medical insurance
D. Liability insurance

13. The major difference between a calculator and a computer, when performing calculations, is that a
A. calculator is faster but needs more human assistance.<<<<<<<<<
B. calculator is slower and needs more human assistance.
C. computer is faster but needs more human assistance.
D. computer is slower but needs less human assistance.

14. Your _______ should furnish enough money to live on, in an emergency, for six months.
A. investments
B. savings<<<<<<
C. interest
D. IRA

15. Which of the following best describes term life insurance?
A. The insured is covered during his or her entire lifetime.
B. The insured pays the premium until his or her death.
C. The insured pays a premium for a specified number of years.<<<<<<<<<<
D. The insured can borrow or collect the cash value of the policy.

16. All insurance is based on a principle called
A. premium earnings.
B. investment premiums.
C. division of risk.<<<<<<<<<<
D. cash value coverage.

17. In a health insurance policy, a statement that an applicant won't be covered for a certain pre-existing condition is called a/an
A. exclusion.<<<<<<<<<
B. supplement.
C. waiting period.
D. major medical coverage.

18. The coverage included in an automobile insurance policy that covers property damage is _______ insurance.
A. supplemental
B. liability<<<<<<<<<
C. major medical
D. term

19. A master plan is devised for
A. emergencies.
B. investments.
C. short-term goals.
D. long-range goals.<<<<<<<

20. A _______ is invested by managers in a diversity of stocks, bonds, and othe
20. r securities.
A. series EE bond
B.promissorynote
C.preferred stock
D.mutual fund<<<<<<<<
- ANSWER:
  I don not agree with 11. I didn;t think anyone had no-fault insurance
QUESTION:
help pleases and thank u?
1. If you have earned income, which of the following retirement devices must you contribute to, by law?
A. Pension plan
B. IRA
C. Social security (FICA)
D. Vesting plan

2. Car insurance that pays for your injuries when you’re in an accident in your car is _______.
A. comprehensive
B. liability
C. medical
D. collision

3. Jane Marko buys a car for ,400.00. In three years, the car depreciates 48% in value. How much is the car worth in three years?
A. ,800.00
B. ,788.00
C. ,472.00
D. ,928.00

4. Which of the following devices imparts ownership in a corporation?
A. Stock
B. Bond
C. Savings account
D. U.S. Treasury Bill

5. Ray Cupple bought a basic car costing ,150.00, with options costing 8.00. There is a 6% sales tax in his state and a combined .00 license and registration fee. What was Ray’s total cost?
A. ,938.00
B. ,541.28
C. ,547.00
D. ,591.28

6. The Hamilton Brush Company issued 2,500 shares of common stock worth 0,000.00 total. What is the par value of each share?
A. .00
B. .00
C. 0.00
D. 0.00

7. Which of the following is intended primarily to enhance a person’s tax advantage and retirement income?
A. U.S. Savings Bond
B. Growth fund
C. Money market fund
D. IRA

8. A share of stock in the Bree Medical Supply Company is quoted at 35 1/4 . Suppose you hold 20 shares of that stock, which you bought at 31 1/2. If you sold your stock at 35 1/4, which of the following would be true?
A. You made a profit of .00.
B. You suffered a loss of .00.
C. You made a profit of 5.00.
D. You suffered a loss of 0.00.

9. What is the first step that a smart new-car buyer should take before talking to salespersons and putting a deposit on a car?
A. Shop around for a car loan.
B. Obtain car insurance.
C. Study the car market.
D. Test-drive the car.

10. Jane has a checkbook balance of .00. She then writes two checks, one for .00 and one for .50. She also deposits .00. She then uses her calculator to determine her new balance. Which of the following is the correct series of keys she should press?
A. 6 8 + 7 5 – 5 – 6 2 . 5 0
B. ON/C 6 8 – 5 – 6 2 . 5 0 + 7 5 =
C. 6 8 + 7 5 – 6 2 5 0 – 5 =
D. ON/C 6 8 + 7 5 = 5 = 6 2 . 5 0

11. The Emerson First National Bank is lending you money to buy a new car. The loan agreement will probably state that you must carry _______ insurance.
A. liability
B. collision
C. no-fault
D. medical

12. On which of the following types of policies is it a certainty that the insurance company will have to make payment? (We have assumed that the policy has been kept current, payments have been made, and the insurance company remains in business.)
A. Life insurance
B. Comprehensive car insurance
C. Medical insurance
D. Liability insurance

13. The major difference between a calculator and a computer, when performing calculations, is that a
A. calculator is faster but needs more human assistance.
B. calculator is slower and needs more human assistance.
C. computer is faster but needs more human assistance.
D. computer is slower but needs less human assistance.

14. Your _______ should furnish enough money to live on, in an emergency, for six months.
A. investments
B. savings
C. interest
D. IRA

15. Which of the following best describes term life insurance?
A. The insured is covered during his or her entire lifetime.
B. The insured pays the premium until his or her death.
C. The insured pays a premium for a specified number of years.
D. The insured can borrow or collect the cash value of the policy.

16. All insurance is based on a principle called
A. premium earnings.
B. investment premiums.
C. division of risk.
D. cash value coverage.

17. In a health insurance policy, a statement that an applicant won’t be covered for a certain pre-existing condition is called a/an
A. exclusion.
B. supplement.
C. waiting period.
D. major medical coverage.

18. The coverage included in an automobile insurance policy that covers property damage is _______ insurance.
A. supplemental
B. liability
C. major medical
D. term

19. A master plan is devised for
A. emergencies.
B. investments.
C. short-term goals.
D. long-range goals.

20. A _______ is invested by managers in a diversity of stocks, bonds, and other securities.
A. series EE bond
B. promissory note
C. preferred stock
D. mutual fund
- ANSWER:
  You do know this is the marriage and divorce section right?
QUESTION:
May I please get some educated help?
If you have earned income, which of the following retirement devices must you contribute to, by law?
A. Pension plan
B. IRA
C. Social security (FICA)
D. Vesting plan

2. Car insurance that pays for your injuries when you’re in an accident in your car is _______.
A. comprehensive
B. liability
C. medical
D. collision

3. Jane Marko buys a car for ,400.00. In three years, the car depreciates 48% in value. How much is the car worth in three years?
A. ,800.00
B. ,788.00
C. ,472.00
D. ,928.00

4. Which of the following devices imparts ownership in a corporation?
A. Stock
B. Bond
C. Savings account
D. U.S. Treasury Bill

5. Ray Cupple bought a basic car costing ,150.00, with options costing 8.00. There is a 6% sales tax in his state and a combined .00 license and registration fee. What was Ray’s total cost?
A. ,938.00
B. ,541.28
C. ,547.00
D. ,591.28

6. The Hamilton Brush Company issued 2,500 shares of common stock worth 0,000.00 total. What is the par value of each share?
A. .00
B. .00
C. 0.00
D. 0.00

7. Which of the following is intended primarily to enhance a person’s tax advantage and retirement income?
A. U.S. Savings Bond
B. Growth fund
C. Money market fund
D. IRA

8. A share of stock in the Bree Medical Supply Company is quoted at 35 1/4 . Suppose you hold 20 shares of that stock, which you bought at 31 1/2. If you sold your stock at 35 1/4, which of the following would be true?
A. You made a profit of .00.
B. You suffered a loss of .00.
C. You made a profit of 5.00.
D. You suffered a loss of 0.00.

9. What is the first step that a smart new-car buyer should take before talking to salespersons and putting a deposit on a car?
A. Shop around for a car loan.
B. Obtain car insurance.
C. Study the car market.
D. Test-drive the car.

10. Jane has a checkbook balance of .00. She then writes two checks, one for .00 and one for .50. She also deposits .00. She then uses her calculator to determine her new balance. Which of the following is the correct series of keys she should press?
A. 6 8 + 7 5 – 5 – 6 2 . 5 0
B. ON/C 6 8 – 5 – 6 2 . 5 0 + 7 5 =
C. 6 8 + 7 5 – 6 2 5 0 – 5 =
D. ON/C 6 8 + 7 5 = 5 = 6 2 . 5 0

11. The Emerson First National Bank is lending you money to buy a new car. The loan agreement will probably state that you must carry _______ insurance.
A. liability
B. collision
C. no-fault
D. medical

12. On which of the following types of policies is it a certainty that the insurance company will have to make payment? (We have assumed that the policy has been kept current, payments have been made, and the insurance company remains in business.)
A. Life insurance
B. Comprehensive car insurance
C. Medical insurance
D. Liability insurance

13. The major difference between a calculator and a computer, when performing calculations, is that a
A. calculator is faster but needs more human assistance.
B. calculator is slower and needs more human assistance.
C. computer is faster but needs more human assistance.
D. computer is slower but needs less human assistance.

14. Your _______ should furnish enough money to live on, in an emergency, for six months.
A. investments
B. savings
C. interest
D. IRA

15. Which of the following best describes term life insurance?
A. The insured is covered during his or her entire lifetime.
B. The insured pays the premium until his or her death.
C. The insured pays a premium for a specified number of years.
D. The insured can borrow or collect the cash value of the policy.

16. All insurance is based on a principle called
A. premium earnings.
B. investment premiums.
C. division of risk.
D. cash value coverage.

17. In a health insurance policy, a statement that an applicant won’t be covered for a certain pre-existing condition is called a/an
A. exclusion.
B. supplement.
C. waiting period.
D. major medical coverage.

18. The coverage included in an automobile insurance policy that covers property damage is _______ insurance.
A. supplemental
B. liability
C. major medical
D. term

19. A master plan is devised for
A. emergencies.
B. investments.
C. short-term goals.
D. long-range goals.

20. A _______ is invested by managers in a diversity of stocks, bonds, and other securities.
A. series EE bond
B. promissory note
C. preferred stock
D. mutual fund
- ANSWER:
  if you had spent the same amount of energy reading your textbook that you spent typing all that in you would know the answers and you would benefit from the experience.
  
  no one is going to do your homework in life.
QUESTION:
I keep getting these wrong and i dont understand why… can anyone please help?
1. If you have earned income, which of the following retirement devices must you contribute to, by law?
A. Pension plan
B. IRA
C. Social security (FICA)
D. Vesting plan

2. Car insurance that pays for your injuries when you’re in an accident in your car is _______.
A. comprehensive
B. liability
C. medical
D. collision
4. Which of the following devices imparts ownership in a corporation?
A. Stock
B. Bond
C. Savings account
D. U.S. Treasury Bill
7. Which of the following is intended primarily to enhance a person’s tax advantage and retirement income?
A. U.S. Savings Bond
B. Growth fund
C. Money market fund
D. IRA
9. What is the first step that a smart new-car buyer should take before talking to salespersons and putting a deposit on a car?
A. Shop around for a car loan.
B. Obtain car insurance.
C. Study the car market.
D. Test-drive the car.
11. The Emerson First National Bank is lending you money to buy a new car. The loan agreement will probably state that you must carry _______ insurance.
A. liability
B. collision
C. no-fault
D. medical

13. The major difference between a calculator and a computer, when performing calculations, is that a
A. calculator is faster but needs more human assistance.
B. calculator is slower and needs more human assistance.
C. computer is faster but needs more human assistance.
D. computer is slower but needs less human assistance.

14. Your _______ should furnish enough money to live on, in an emergency, for six months.
A. investments
B. savings
C. interest
D. IRA

15. Which of the following best describes term life insurance?
A. The insured is covered during his or her entire lifetime.
B. The insured pays the premium until his or her death.
C. The insured pays a premium for a specified number of years.
D. The insured can borrow or collect the cash value of the policy.
17. In a health insurance policy, a statement that an applicant won’t be covered for a certain pre-existing condition is called a/an
A. exclusion.
B. supplement.
C. waiting period.
D. major medical coverage.
20. A _______ is invested by managers in a diversity of stocks, bonds, and other securities.
A. series EE bond
B. promissory note
C. preferred stock
D. mutual fund
- ANSWER:
  1. C
  2. C or B
  4. A
  7. D
  9. D
  11. B
  13. B
  14. A
  15. C
  17. A
  20. D
QUESTION:
i put 1 as d and 2 as d and 4 as b and 7 as a and 9 as a and 11 as a and 12 as a and 14 as c and i got them wr?
1. If you have earned income, which of the following retirement devices must you contribute to, by law?
A. Pension plan
B. IRA
C. Social security (FICA)
D. Vesting plan

2. Car insurance that pays for your injuries when you’re in an accident in your car is _______.
A. comprehensive
B. liability
C. medical
D. collision
4. Which of the following devices imparts ownership in a corporation?
A. Stock
B. Bond
C. Savings account
D. U.S. Treasury Bill
7. Which of the following is intended primarily to enhance a person’s tax advantage and retirement income?
A. U.S. Savings Bond
B. Growth fund
C. Money market fund
D. IRA
9. What is the first step that a smart new-car buyer should take before talking to salespersons and putting a deposit on a car?
A. Shop around for a car loan.
B. Obtain car insurance.
C. Study the car market.
D. Test-drive the car.
11. The Emerson First National Bank is lending you money to buy a new car. The loan agreement will probably state that you must carry _______ insurance.
A. liability
B. collision
C. no-fault
D. medical

13. The major difference between a calculator and a computer, when performing calculations, is that a
A. calculator is faster but needs more human assistance.
B. calculator is slower and needs more human assistance.
C. computer is faster but needs more human assistance.
D. computer is slower but needs less human assistance.

14. Your _______ should furnish enough money to live on, in an emergency, for six months.
A. investments
B. savings
C. interest
D. IRA

15. Which of the following best describes term life insurance?
A. The insured is covered during his or her entire lifetime.
B. The insured pays the premium until his or her death.
C. The insured pays a premium for a specified number of years.
D. The insured can borrow or collect the cash value of the policy.
17. In a health insurance policy, a statement that an applicant won’t be covered for a certain pre-existing condition is called a/an
A. exclusion.
B. supplement.
C. waiting period.
D. major medical coverage.
20. A _______ is invested by managers in a diversity of stocks, bonds, and other securities.
A. series EE bond
B. promissory note
C. preferred stock
D. mutual fund
- ANSWER:
  1. W
  2. T
  3. F
QUESTION:
I need some help with these, i am getting them wrong, but im not understanding why.?
1. If you have earned income, which of the following retirement devices must you contribute to, by law?
A. Pension plan
B. IRA
C. Social security (FICA)
D. Vesting plan

2. Car insurance that pays for your injuries when you’re in an accident in your car is _______.
A. comprehensive
B. liability
C. medical
D. collision
4. Which of the following devices imparts ownership in a corporation?
A. Stock
B. Bond
C. Savings account
D. U.S. Treasury Bill
7. Which of the following is intended primarily to enhance a person’s tax advantage and retirement income?
A. U.S. Savings Bond
B. Growth fund
C. Money market fund
D. IRA
9. What is the first step that a smart new-car buyer should take before talking to salespersons and putting a deposit on a car?
A. Shop around for a car loan.
B. Obtain car insurance.
C. Study the car market.
D. Test-drive the car.
11. The Emerson First National Bank is lending you money to buy a new car. The loan agreement will probably state that you must carry _______ insurance.
A. liability
B. collision
C. no-fault
D. medical

13. The major difference between a calculator and a computer, when performing calculations, is that a
A. calculator is faster but needs more human assistance.
B. calculator is slower and needs more human assistance.
C. computer is faster but needs more human assistance.
D. computer is slower but needs less human assistance.

14. Your _______ should furnish enough money to live on, in an emergency, for six months.
A. investments
B. savings
C. interest
D. IRA

15. Which of the following best describes term life insurance?
A. The insured is covered during his or her entire lifetime.
B. The insured pays the premium until his or her death.
C. The insured pays a premium for a specified number of years.
D. The insured can borrow or collect the cash value of the policy.
17. In a health insurance policy, a statement that an applicant won’t be covered for a certain pre-existing condition is called a/an
A. exclusion.
B. supplement.
C. waiting period.
D. major medical coverage.
20. A _______ is invested by managers in a diversity of stocks, bonds, and other securities.
A. series EE bond
B. promissory note
C. preferred stock
D. mutual fund
- ANSWER:
QUESTION:
Which is the best investment option my 401K offers?
I am 33 years old looking for investment advice. Ideal retirement age is 60. Currently have 25K in my 401 between 7 different funds. Retirement calculator indicates I will need 2 million dollars at age 60 to replace 80% of my income. Below are my companies investment options. Any suggestion is appreciated. Thanks.

EB Diversified Stock Fund
Vanguard Inst Index Fd (Inst Plus)
Wells Fargo Advan Agg Alloc (Admin)
Fidelity Small Company Fund
Vanguard Mid-Cap Index Fund Instl
Vanguard Small-Cap Index Fund Instl
Wellington Mid-Cap Opportunities 2
EuroPacific Growth Fund Class R-5
Wells Fargo Advan Grow Bal (Admin)
Dodge & Cox Income Fund
Wells Fargo Advan Con Alloc (Admin)
With regards to the fund manager, I work for an insurance company, but login through Wachovia to mange my allocations, review balances, etc. My current allocation model is 30% Europacific, 30% Vangaurd mid cap, 30% Vangaurd small-cap, 10% dodge&cox income.
- ANSWER:
  Your 4 choices seem to cover everything nicely…..tough times all around right now, but you have years to see better returns. If you sit in what you have for five years or so, you should see decent returns….as times goes by, occasionally compare the small to the mid…or check Fidelity’s small to your V-guard…. make some little 10% changes if you see obvious out- performance…but generally just ride along. There doesn’t seem to be anything ” extremely aggressive”…so you should be ” safe”……. good luck !!
QUESTION:
I need help with my work so can someone please answer the following questions so i may compair.?
5. Ray Cupple bought a basic car costing ,150.00, with options costing 8.00. There is a 6% sales tax in his state and a combined .00 license and registration fee. What was Ray’s total cost?
A. ,938.00
B. ,541.28
C. ,547.00
D. ,591.28

6. The Hamilton Brush Company issued 2,500 shares of common stock worth 0,000.00 total. What is the par value of each share?
A. .00
B. .00
C. 0.00
D. 0.00

7. Which of the following is intended primarily to enhance a person’s tax advantage and retirement income?
A. U.S. Savings Bond
B. Growth fund
C. Money market fund
D. IRA

8. A share of stock in the Bree Medical Supply Company is quoted at 35 1/4 . Suppose you hold 20 shares of that stock, which you bought at 31 1/2. If you sold your stock at 35 1/4, which of the following would be true?
A. You made a profit of .00.
B. You suffered a loss of .00.
C. You made a profit of 5.00.
D. You suffered a loss of 0.00.

9. What is the first step that a smart new-car buyer should take before talking to salespersons and putting a deposit on a car?
A. Shop around for a car loan.
B. Obtain car insurance.
C. Study the car market.
D. Test-drive the car.

10. Jane has a checkbook balance of .00. She then writes two checks, one for .00 and one for .50. She also deposits .00. She then uses her calculator to determine her new balance. Which of the following is the correct series of keys she should press?
A. 6 8 + 7 5 – 5 – 6 2 . 5 0
B. ON/C 6 8 – 5 – 6 2 . 5 0 + 7 5 =
C. 6 8 + 7 5 – 6 2 5 0 – 5 =
D. ON/C 6 8 + 7 5 = 5 = 6 2 . 5 0

11. The Emerson First National Bank is lending you money to buy a new car. The loan agreement will probably state that you must carry _______ insurance.
A. liability
B. collision
C. no-fault
D. medical

12. On which of the following types of policies is it a certainty that the insurance company will have to make payment? (We have assumed that the policy has been kept current, payments have been made, and the insurance company remains in business.)
A. Life insurance
B. Comprehensive car insurance
C. Medical insurance
D. Liability insurance

13. The major difference between a calculator and a computer, when performing calculations, is that a
A. calculator is faster but needs more human assistance.
B. calculator is slower and needs more human assistance.
C. computer is faster but needs more human assistance.
D. computer is slower but needs less human assistance.

14. Your _______ should furnish enough money to live on, in an emergency, for six months.
A. investments
B. savings
C. interest
D. IRA

15. Which of the following best describes term life insurance?
A. The insured is covered during his or her entire lifetime.
B. The insured pays the premium until his or her death.
C. The insured pays a premium for a specified number of years.
D. The insured can borrow or collect the cash value of the policy.

16. All insurance is based on a principle called
A. premium earnings.
B. investment premiums.
C. division of risk.
D. cash value coverage.

17. In a health insurance policy, a statement that an applicant won’t be covered for a certain pre-existing condition is called a/an
A. exclusion.
B. supplement.
C. waiting period.
D. major medical coverage.

18. The coverage included in an automobile insurance policy that covers property damage is _______ insurance.
A. supplemental
B. liability
C. major medical
D. term

19. A master plan is devised for
A. emergencies.
B. investments.
C. short-term goals.
D. long-range goals.

20. A _______ is invested by managers in a diversity of stocks, bonds, and other securities.
A. series EE bond
B. promissory note
C. preferred stock
D. mutual fund
- ANSWER:
  You are NOT asking for help. You are posting your homework assignment for us to do. This is called cheating and I won’t help you. However, if you post your answers, I’ll be happy to check them for you to see if they are correct. I, for one, don’t believe you’ve even tried.
  
  BTW: I noticed several attempts to get this done for you by putting less questions in one post. I hope people don’t fall for it … do your own work!
QUESTION:
Is million a realistic investment/retirement goal?
Im 22 and in college still studying computer science and hoping to start investing soon. I figure if I start out at ,000 or more after graduation (average for my department) and invest 20% of my income (may adjust if needed) every year and live frugally but comfortably, do you think this is a realistic goal?

I plan to invest in a mix of stocks (green and IT mostly) and some mutual funds.

I used a compound interest calculator with an average return of 10% and it hit at least 2.5 million that is if I started out investing ,000 (after 3 or 4 years of work) and added 00 to ,000 a year or whatever is 10% or 20% of my income. Of course this isn’t including taxes which is why I put million realistically. (I wasn’t sure what a realistic return rate would be combining stocks and mutual funds.)

The most I’d ever plan on spending on a house would be 0k to million depending on the area. I’d probably live in a condo no more than 0k and pay mortgage after graduation. At least my dad suggested that instead of paying rent.

I am a newbie at investing and still trying to read up on it before actually starting in year or two.

I could use some expert opinion on how I should start, and what I should change.
- ANSWER:
  The sooner you start, the better. Rule of 72: divide 72 by your interest rate earned to find out how long it takes your money to double. If you got 10%, it would take 7.2 years to double what you invest. Quadruple in 14.4 years, etc. The power of compounding makes it more important to start early and allow your principal to grow over a longer period.
  
  You’ll probably need more than million to retire at age 70. Inflation and taxes eat up your returns. A million is diddly to a retiree today, given the high – and rising – cost of living, outrageous taxes, medical care costs, etc. If they can get 10%, of that 0,000/yr, taxes eat more than half. I have friends whose annual property taxes on home are higher than the cost of the house purchased 40 yrs ago. They cannot afford to remain in the home they bought to live out the rest of their lives due to the property taxes. You can reasonably expect the same or worse since the US, 48 of 50 states, counties and cities are all bankrupt and dramatically increasing taxes.
  
  Start with your very first paycheck. You’re gonna need every last cent and then some.
QUESTION:
Help! I dont have my financial calculator?
If I want to retire at 62 and have annual income of 0,000 until I am 84, how much do I need to have in savings when I retired. To get that lump sum, how much do I need to put away each year. I am 24 today and think I can earn 5% during the entire time.

also,

I can only put away ,000 a year toward retirement. I am 22 and plan on retiring at 65 and earning 6%. How much will I have at retirement? If I need it to last for 15 years, how much will I have per year to live on.

TYVM!
If I want to retire at 62 and have annual income of 0,000 until I am 84, how much do I need to have in savings when I retired. To get that lump sum, how much do I need to put away each year. I am 24 today and think I can earn 5% during the entire time.
- ANSWER:
  You didn’t clarify your question, so for the following answers I’m assuming interest is compounded monthly and all payments (deposits and withdrawals) are made at the beginning of the period.
  
  For the first question, you will need ,106,749.36 in your savings. You will need to put away ,069.88 per year.
  
  For the second question, you will have ,157.54 when you retire. You will be able to withdraw ,636.72 per year.
QUESTION:
Finance Problems using TI-83 Plus?
Use the “Finance” key on you TI-83 to solve the following problems. Use the TVM Solver program in Finance.

1) Determine the monthly car payment necessary to repay a ,700 car loan if interest is computed at 7.13% per year compounded monthly and the loan period is five years.

N = 5* 12 = 60
I% = 7.13 / 12 (I’m not sure if this is correct?)
PV = 29,700
PMT = (Trying to solve for this I got 513.15 not sure if it’s correct. )
FV = 0

2) How much money should a couple invest at the end of each year if the objective is to accumulate ,750 after 17 years (says for a child’s education)? Assume that the investment earns interest at the annual rate of 4.25% per year compounded quarterly.

N = (I’m not sure)
I% = 4.25% / 4 (Divided by 4 because it’s quarterly?)
PV = (Not sure)
PMT = (Not Sure)
FV = (I’m guessing this is suppose to be 62,750)

3) A person wants to retire at the age of 55 years. He/she wants to draw a monthly retirement income of ,500 for the next 30 years from a pension plan that holds his/her money that earns 3.85% per compounded monthly. What amount of money must be put into the pension plan initially (at age 55) to ensure the desired monthly retirement income for the person?

N = ?
I% = ?
PV = ?
PMT = ?
FV = ?

4) A couple wants to buy a vacation home in 6.5 years. What one-time total amount should they invest now that will earn interest at the rate of 4.52% compounded semi-annually in order to have a ,000 down payment for the vacation home at the end of the 6.5 years?

N = ?
I% =?
PV = ?
PMT = ?
FV = ?

http://www.tvmcalcs.com/calculators/ti83/ti83_page2 (this link helps to provide what N, I%, PV, PMT, and FV means.) Please help me with this finance problems!!! Any hints would help!
- ANSWER:
  On the solution to your problem with the TI-83 Plus, you can read here http://usafinance2009.blogspot.com/?q=TI-83%20Plus
QUESTION:
401k and my Retirement?
I started my 401k 3 years ago and I am 25. I am shooting for 2 million in my 401k at age 65. Given that and assuming a rate of return of around 7-9% over the life of my investments, it seems possible. However is that a safe rate to assume. I got these figures off the online calculators assuming I never get a raise and I keep my 8% deduction from my pay. However I want someone to confirm the following numbers for me.

2 million @ age 65. Lets assume I live till 95 and I take a “monthly” check so that my 401k money is still growing at a 7% rate.

If I want to live those 30 years with 0,000 a year as my income to do whatever then basically that will be possible because ,000,000 x 0.07 = 0,000 a year. So if I take monthly checks there is a strong possibility that I could die with 2 million + in my account is that right? I am wanting to live a wealthy life style when I die and I want to leave plenty of money for my future family so that they dont have to work as hard as I or my parents have? Am I on track and looking at this properly. I want to recieve my 401k earnings in a monthly check instead of withdrawing it all so that my money is still making money.

Thanks everyone.
Thanks Stephen.
I do not have a roth, I was under the impression that the compounded intrest I woul make in the long run with a traditional 401k was smarter than paying the taxes on it now with a ROTH?

Also I was curious as to what a “safe” rate of return could be assumed over the life of a 401k (40 Years)? I am on the conservative side as far as investments. 50% is in the company because there contribution is 100% up to 3%.

Also I was curious as to wether my math was correct on check dispersments when I retire, Could one live off the intrest alone and leave there money invested so that when I pass one day, I can leave a sump of money to future kids and grand kids. Thanks everyone.
I like how that was put. And inflation sounds right. I try to look at worst case scenario just so I wont expect anything but the worst. I make ,xxx right now and through these online calculators I have assumed that I will NEVER get a raise. I hope to one day make ,000+ but will see. I like the knowledge you added to this and appreciate it. I need to finish school so I can have rediculous money in my retirement or even retire early. I appreciate everything from everyone.
- ANSWER:
  The other two answers are pretty good…so I’m just going to add a little more info for thought.
  
  You must also keep in mind that 0,000 (or million) today is going to be worth a lot more than 0,000 in 25 years, let alone 70 years. A significant portion of that 7%-10% return is just covering the destruction of purchasing power due to inflation.
  
  For example, I am a bit more than 53 years old. When I was your age I took a job for the spectacular sum of ,000. That is still a decent salary, but for you to be earning the same purchasing power now (at 25) that I earned at 25, your salary today would have to be at least 4,000. That is just 28 years of inflation.
  
  0,000 sounds good right now, but it will likely be worth less than ,000 in 25 years and less than ,000 in fifty years.
QUESTION:
Should I make xtra paymts towards my student loan or put it into savings until I can pay it all off?
My student loan is ~,000 @ 4.125%. I am debt free except for my house, and I have a good start on my retirement fund. I am ready to start making extra payments each month towards my student loan of 0- 00 each month. My monthly income varies, so I can not commit to an exact dollar amount each month.
I also have a savings account that is currently paying 5.20%apy or 5.16% per month. As long as this rate stays at this range, am I better off putting my extra payments into the savings account until I have enough to pay off my student loan? My thinking on this is that the student loan is tax deductible and the savings is paying more than the costs of my loan. I am very strict about not dipping into accounts that are earmarked for other things, but if I did put the money into the savings, it would give me a buffer in case I had a bad month financially with income flow.
I am in the 28% tax bracket.
Anyone have a calculator that calculates paying off debt vs investing
- ANSWER:
  I would say invest instead of paying a low interest debt like student loan.
QUESTION:
Homeschool, homework HELP in comsumer math pt.3 from penn foster?
1. If you have earned income, which of the following retirement devices must you contribute to, by law?

A. Pension plan
B. IRA

C. Social security (FICA)

D. Vesting plan

2. Car insurance that pays for your injuries when you’re in an accident in your car is _______.

A. comprehensive
B. liability

C. medical

D. collision

3. Jane Marko buys a car for ,400.00. In three years, the car depreciates 48% in value. How much is the car worth in three years?

5. Ray Cupple bought a basic car costing ,150.00, with options costing 8.00. There is a 6% sales tax in his state and a combined .00 license and registration fee. What was Ray’s total cost?

A. ,938.00
B. ,541.28

C. ,547.00

D. ,591.28

8. A share of stock in the Bree Medical Supply Company is quoted at 35 1/4 . Suppose you hold 20 shares of that stock, which you bought at 31 1/2. If you sold your stock at 35 1/4, which of the following would be true?

A. You made a profit of .00.
B. You suffered a loss of .00.

C. You made a profit of 5.00.

D. You suffered a loss of 0.00.

9. What is the first step that a smart new-car buyer should take before talking to salespersons and putting a deposit on a car?

A. Shop around for a car loan.
B. Obtain car insurance.

C. Study the car market.

D. Test-drive the car.

13. The major difference between a calculator and a computer, when performing calculations, is that a

A. calculator is faster but needs more human assistance.
B. calculator is slower and needs more human assistance.

C. computer is faster but needs more human assistance.

D. computer is slower but needs less human assistance.

15. Which of the following best describes term life insurance?

A. The insured is covered during his or her entire lifetime.
B. The insured pays the premium until his or her death.

C. The insured pays a premium for a specified number of years.

D. The insured can borrow or collect the cash value of the policy.

19. A master plan is devised for

A. emergencies.
B. investments.

C. short-term goals.

D. long-range goals.

20. A _______ is invested by managers in a diversity of stocks, bonds, and other securities.

A. series EE bond
B. promissory note

C. preferred stock

D. mutual fund

A. ,800.00
B. ,788.00

C. ,472.00

D. ,928.00
- ANSWER:
  Please do not solicit answers on Y!A, as this is considered cheating.
  
  If you need help, please contact the school at:
  
  http://www.pennfoster.edu/contact_us.html
  
  Penn Foster
QUESTION:
What rate of return should I expect in the long run in an index fund?
I am trying to plan for retirement.

I am 24 years old, and I have almost ,000 saved up already, thanks to my father, but now that I have a career of my own, it is my responsibility to take over its management and to plan for my retirement.

My goal is to save up so much money that my interest alone provides a comfortable income for the rest of my life. I do not want to deplete my principal during retirement; I only want to draw out interest and gains, so that there is no date by which I must die in order to keep from going broke during my lifetime.

If I am very careful not to spend more than I must, I think I can save 0 to 0 per month, at my current income level.

Whenever I plug my numbers into a financial calculator, however, I must estimate my rate of return, which makes an enormous difference in whether I will have to save for 50 years or only 25.

I plan to keep all of my retirement funds in an index fund, so that I get the benefits of the stock market over the long term, without needing to keep my eyes on it to re-arrange my portfolio. However, when I approach retirement, I will start moving whatever I will need in the next 20 years into a bond market, instead of the stock market, so that the immediate 20 years will be more secure, as the stock market can still be relatively volatile over a period of only 20 years or shorter.

If I do that, what sort of average rate of return can I expect from my retirement fund over the long, long term? What about just from the index fund? What about just from the bond market?

I would like realistic, conservative estimates, so that I can make sound decisions and have an accurate estimate of how long it will take me to become independently wealthy.
- ANSWER:
  In a growth index fund, such as the S&P 500, it’s safe to assume a 10-12% annual return over the long haul. If you add 0/month for the next 40 years, you’ll end up with around million, conservatively. Even with the inevitable Obama-induced hyperinflation to come, you’ll probably still be pretty comfortable.
QUESTION:
Tax Questions, Including What could I expect for a tax return (Canada)?
My status is as follows:

Total income nearing December 2008, is rounded off to: ,050 (That’s Both jobs combined, mind you – I work two).

My medical expenses, (Dental fees and Brace payments) after union reimbursement is about 1,2-,300

(Deductions combined from both jobs, excluding unions dues)
EI: 0.00 deducted
CPP: 0 Deducted
Union Dues: 0.00 Deducted
Income Tax(1): 0.00
FED Tax: 5.00
Donations: .00
Other Medical Expenses: 0.00

And addition of Canada’s Work Taxing credit.

Question 2-3. I also tried the TaxTip Calculator
( http://www.taxtips.ca/calculators/taxcalculator.htm ) but had trouble filling and figuring it out, as this is only my third year filing, I used H&R previous times, and haven’t any tax experience. I earned just under ,500 last year, claimed ,200 in medical expenses and recieved just over 0.00 in my return, can I expect to attain the same with my status – if not more??)

Question 4. I also would like to ask, on the taxtip Calculator, where is the option for Federal tax, and Income tax – are they the same thing? I notice on one of my paystubs it says Income tax, the other Federal tax..Different things?

CPP is that all around the same thing – a form of retirement? Do they mean CPP in a general, as a whole – is CPP just the same deductions off all paychecks.

For Gst, if you say ‘Yes’ and get the quarterly installments (I chose yes) what if you choose no? does it matter, will it benefit your return on the next years filing? Or do you get nothing, and choose it if eligable?

I am sorry I have so many questions, I am a novice in the extreme and would REALLY appreciate feedback on any of my many questions stated. Thank you for your time,
- ANSWER:
  Your best bet is to go to Quicktax.ca, which offers a free online filing system for incomes below ,000. It has a really simple input that just asks you simple questions.
  
  Federal tax and income tax: same thing. You pay Federal and Provincial tax, but it will usually appear as just a single deduction on your pay stub (unless you are in Quebec…let’s not go there)
  
  CPP is Canada pension PLan. Yes, retirement. It’s not optional, and both you and your employer pay a portion of your wages into it.
  
  Check Yes for the GST. It’s a silly box, actually. The only reason NOT to check it is if you are married (or common law) and your spouse is claiming it. If you do not qualify, you just don’t get anything. You should qualify.
QUESTION:
How many allowances should I take on my W4?
I know is a popular question… I know there is an IRS calculator … but, I’m still confused of how to use it so asking form specific answers on my specific and particular case.

-Married filing joint return
-No children, no dependents
-My wife and I are in our 30s
-Paid Taxes: 3836
-Interest I paid: 13065

Me
Income 83’149.00
Enter your total 2009 contribution to a tax-deferred retirement plan, FSA or HSA.: 2’281.00
Enter the total Federal income tax withheld to date in 2009 (including amounts withheld from bonuses or which you expect to have withheld for bonuses): 16’610.00
Enter the Federal income tax withheld from your last salary payment: 2948
How frequently I’m paid: semi monthly

Her
Income 20’603.00
Enter your total 2009 contribution to a tax-deferred retirement plan, FSA or HSA.: [she does not have 401k or similar so I guess is blank here]
Enter the total Federal income tax withheld to date in 2009 (including amounts withheld from bonuses or which you expect to have withheld for bonuses): 1’934.00
Enter the Federal income tax withheld from your last salary payment: [I do not have this information now, guessing, about 500?]
How frequently I’m paid: every 2 weeks (Fridays)

So.. using that info I IRS advice me about 21 allowances… looks high in my opinion and that’s the reason for my question. Please confirm or clarify numbers with me.

Thanks

PS: expected current’s year return is ’489.00 … nice receiving money but high, I would like to “convert” that into “take home salary” without having to pay next year.
- ANSWER:
  You entered the wrong amounts for “Enter the total Federal income tax withheld to date in 2009″. Since your income is ,149 per year, you have only made approximately ,000 so far this year. (We are less than 1/8 of the way through the year.) You could not have had over ,000 withheld already this year.
QUESTION:
Does money buy happiness?
Does money buy happiness? I BELIEVE IT DOES, 100 PERCENT. WHY?????

People with a Bachelor’s degree, Masters and PH.D’s will generally earn a respectable income, in addition, they will enjoy a life time career that relates to their degree. These people will generally have a better looking wife, nicer home, reside in a safer neighborhood, they generally have an excellent retirement packages and their off spring will continue their success.

Others with degrees that earn sub par wages and while working in non-respectable jobs are generally depressed and prone to commit suicide. They will lose hope to in the American Dream, they will have less prospects in life, and their off spring will either end up in jail or six feet under. These people are coupled with American’s that had no desire to go to college, yet I see more American’s emerging into the Proletarian status.

============================================================================
All I care about in life is myself, because your career/income is your self worth in life and women admire rich men. I work in a depression proof industry and my fiscal income can range from k to k, in an industry that I only worked in for only 15 months, furthermore, I invest my money and I use “margin money” to increase my Margin Account and Net Worth. What do they generally want, a man with a good to great career/home/car/personality/etc….
====================================================================

“This Black-Scholes calculator allows you to figure out the value of a European call or put option. The calculator uses the stock’s current share price, the option strike price, time to expiration, risk-free interest rate, and volatility to derive the value of these options. The Black-Scholes calculation used by this tool assumes no dividend is paid on the stock”

http://www.money-zine.com/Calculators/Investment-Calculators/Black-Scholes-Calculator/

Will, I AM extremely bored in life, perhaps because I currently have no GF and Children to support. I work all the time and barely home. That amount of income I am generating is still pocket change, compared to hedge fund managers and high-end Engineers.
chloe, I personally feel self confident, superior and more important because my income/net worth continues to stock pile, whereas I think it is utterly pathetic how some of my non-educated friends cannot save k. I saved over k, just in 2010 when you include my tax return! I could of hooked up with some “blond girl”, but I am gone all the time and I work in a SEMI respectable job.
- ANSWER:
  Robert Money, if you “work all of the time” you will not meet any potential girlfriends. Working ALL ot the time will not make you happy.
QUESTION:
What impact does leaving a good paying full time job for a part time job have on your SS Benefits.?
I have been working full time for 20 years. My plan is to leave my job 2011 and work locally part time there after. Using the SS calculator at the SS Gov website shows my benefits to be pretty good at my current expected level of income even if I stop working 2011. But if my income in my new job is half that amount for the last 15 years before retirement would my SS benefit calulation be based on the new lower income amount?
I would like to think I can return to the work force after my first career. Thanks.
- ANSWER:
  Your benifits from social security are based on your lifetime of income.
QUESTION:
What is “total wages, salary, and tips (excluding bonuses) you expect to receive in 2010″?
I am trying to use the withholding Calculator from the IRS web page and it asks to: “Enter the total wages, salary, and tips (excluding bonuses) you expect to receive in 2010″….I am trying to figure out if this would be the gross pay or the taxable wages since below it asks to “Enter the total Federal income tax withheld to date in 2010″, “Enter your total 2010 contribution to a tax-deferred retirement plan, FSA or HSA.”

I don’t want to be doubling my deductions. Has anybody use this calculator and does anybody know if it should be the gross pay or taxable wages??
- ANSWER:
  You need to enter your gross pay, that is, your pay before any deductions have been made for anything whatsoever. If you are not being claimed as a dependent by anyone else, you are entitled to one exemption, assuming of course that you are not married. The other questions, I think are self-explanatory.
QUESTION:
CAN YOU RECOMMEND A GOOD AND REALISTIC FINANCIAL ADVISOR?
I am on the cusp of an early retirement. Having been in my field for over 30 years, I am tired of it. The expenses of keeping my business open and the declining income have gotten to a point of practical no return. I am subsidizing the business just to stay open with money that I could be using for retirement. Why? Fear of the unknown – period. It is costing me -4K a month to keep my business open – a tactic that can buy time till I know for sure that my retirement assets are enough to walk away forever. On the other hand, walking away now would cost me between -10K a month (depending on other circumstances beyond my control which I will tell the advisor). It is easier to bleed a little than to bleed a lot, but the work atmosphere has quite literally been killing me on so many levels. I am looking for a good financial advisor, not a salesman who will try to baffle me with lies and pie charts. If you are in, or near, retirement or have dealt with a good advisor over the last 5-10+ years, please put his name and number down – I will call. If you know of good financial planning software available on the web or for purchase, please list it here with a link (if possible). There are a lot of financial calculators available, but most are pretty useless and don’t allow for different spending levels or phases in your life. My portifolio is 7 figures, not chump change.

Thank you in advance.
- ANSWER:
  You need to ask relatives or your accountant to recommend someone. Get one that you pay a flat fee for a Full Plan that includes Total expected income needed, how and where to invest, projections of Cost of Living. Using Software or someone far away is useless. A good plan takes about 3 hours of face to face time, ability to discover your expectations and arrive at a start plan. A good adviser then works with your closely to adjust the plan according to your needs and changes in your life. You should be able to draw enough income to cover all living expenses and not touch principal. Principal must grow to keep pace with COLA and your life span.
  Upstate NY are the company is Fenimore Asset Managment, Inc
  Small size firm that offers it all plus one on one contact.
QUESTION:
Would we qualify? and how much?
Thinking about buying a condo with my fiancé in Los Angeles…Do you think we will qualify and about how much?

His Score EX 750
Mine EX 710
No negatives

INCOME
Gross income combined is 51k
My fiancé makes another 4k a year but is not reported or taxed…I know this won’t help us.

EMPLOYMENT
I am done with school and I am currently working in the same field I studied. I have been working with my current employer for a year and 3 months. Prior to that I worked at another company in the same field for 1 year.
My fiancé has been at his employer for a year and 6 months. Before that he worked for a sporting goods store for 3 years.

DEBT
Together the only debt we have is a 239.00 monthly lease payment on my car.
No school loans.
We have plenty of Credit cards but all balances are very small and paid off every month if any.
I also contribute 0 a month to a IRA retirement account.

ASSETS
25000K in savings to spend on down payment AND closing cost.
My fiancé has a 2006 truck with 15k mileage –Paid off… (I don’t know if that counts)

I have been looking at those online mortgage calculators but I don’t know how true they are.

Let me know what you guys think… THANKS!
- ANSWER:
  The first thing you and your B/F should do is draft a contract between the two of you as to what happens if the relationship hit the skids and you decide to go your separate ways.
  
  I know things are great now, but when the skidding start it is too late, because things are going to fast and rational decisions can not be made.
  
  In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.
  
  Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.
  
  He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.
  
  The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.
  
  When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.
  
  #1 One month of pay stubs for each person that will be on the mortgage.
  
  #2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.
  
  #3 Two years of federal income tax along with the W-2 that match.
  
  Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.
  
  Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.
  
  Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.
  
  If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.
  
  You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.
  
  Make sure your mortgage broker explain all your options so you may make an intelligent decision.
  
  What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.
  
  So select the best option for you and your financial situation.
  
  You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.
  
  Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.
  
  Your mortgage broker will now order an appraisal to show proof of the property value.
  
  The mortgage broker might ask for additional information or documentation, don’t get all up tight this is normal, just supply the information or find the documents needed.
  
  After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.
  
  Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.
  
  I hope this has been of some use to you, good luck
  
  “FIGHT ON”
QUESTION:
Would a bank qualify us for a home loan?
Thinking about buying a condo with my fiancé in Los Angeles…Do you think we will qualify and about how much?

His Score EX 750
Mine EX 710
No negatives

INCOME
Gross income combined is 51k
My fiancé makes another 4k a year but is not reported or taxed…I know this won’t help us.

EMPLOYMENT
I am done with school and I am currently working in the same field I studied. I have been working with my current employer for a year and 3 months. Prior to that I worked at another company in the same field for 1 year.
My fiancé has been at his employer for a year and 6 months. Before that he worked for a sporting goods store for 3 years.

DEBT
Together the only debt we have is a 239.00 monthly lease payment on my car.
No school loans.
We have plenty of Credit cards but all balances are very small and paid off every month if any.
I also contribute 0 a month to a IRA retirement account.

ASSETS
25000K in savings to spend on down payment AND closing cost.
My fiancé has a 2006 truck with 15k mileage –Paid off… (I don’t know if that counts)

I have been looking at those online mortgage calculators but I don’t know how true they are.

Let me know what you guys think… THANKS!
- ANSWER:
  Firstly, you need to figure out how much money you will borrow – don’t make the mistake to borrow an amount that you are unsure to afford to pay.
  
  Once you determine the amount, you could consult a lender (a traditional one is better) and ask for an estimate for financing costs and the conditions you can expect in regards to your loan after the lender has reviewed your credit score.
  
  If the conditions offered do not meet your expectations, do not hesitate to find a better offer.
  
  The common rule of thumb is that when purchasing a house you want to look for one whose total annual repayment does not exceed a third of your annual wage.
  
  Remember that your home mortgage payments can be higher than you paid for rent but there are also additional things to pay when you become a homeowner: property taxes, homeowners insurance policy as well as higher charges for utilities.
  
  Hope this helps
QUESTION:
Would we qualify? How much house could we afford?
Thinking about buying a condo with my fiancé in Los Angeles…Do you think we will qualify and about how much?

His Score EX 750
Mine EX 710
No negatives

INCOME
Gross income combined is 51k
My fiancé makes another 4k a year but is not reported or taxed…I know this won’t help us.

EMPLOYMENT
I am done with school and I am currently working in the same field I studied. I have been working with my current employer for a year and 3 months. Prior to that I worked at another company in the same field for 1 year.
My fiancé has been at his employer for a year and 6 months. Before that he worked for a sporting goods store for 3 years.

DEBT
Together the only debt we have is a 239.00 monthly lease payment on my car.
No school loans.
We have plenty of Credit cards but all balances are very small and paid off every month if any.
I also contribute 0 a month to a IRA retirement account.

ASSETS
25000K in savings to spend on down payment AND closing cost.
My fiancé has a 2006 truck with 15k mileage –Paid off… (I don’t know if that counts)

I have been looking at those online mortgage calculators but I don’t know how true they are.

Let me know what you guys think… THANKS!
- ANSWER:
  Kind of a tough question. Typically, banks want your debt to income ratio to be less than 40% which based on what you said, your current dti is about 6% (car lease). Looking at that, to get to 40%, you could have an additional ,400 in monthly payments. You’d have to back out your escrow (taxes and insurance) from that. Just assume that to be around 0 per month. (just a guess). That leaves you with about ,100 per month for just the mortgage. You should honestly ask yourself if you can afford a total house payment of ,400 per month along with you other expenses.
  
  Considering ,100 per month mortgage, on a 30 year note at 5.5%, that’s a balance of about 0,000. Add in your k down payment and that gives you about 5k that you could afford.
  
  That’s based on a 30 year note. There are millions of financing options that could change that.
QUESTION:
Grad student – am I a good candidate for a mortgage?
I am 23, turning 24 this year. I am a PhD graduate student and will be for another 3-4 years. I am paid a stipend of k/yr and my tuition and health insurance is covered as long as I’m in school. My FICO is 760. I have k in student loans from undergrad that are currently deferred until I’m finished with school. I have no credit card or consumer debt, never had. I have k in retirement funds and k in an emergency fund. My savings account should be up to k by December, unless something goes wrong. All this I have saved from my measely income for 2 years. I also own my car outright, paid for in cash. (In that timeframe I’ve also covered moving expenses and an apartment full of new furniture + electronics.) So I would say I’m pretty good with money for my age.

My current rent is 5, nothing included. I’m wondering if it is smarter to buy. I will stay in the area for another 3 years, perhaps more if I decide to stay and work here after graduation. I have a good FICO score so I think I would get a reasonable rate (5.0%?). My credit report shows 5 years of history, all my accounts are in good standing, nothing negative. My available credit limit is approx. k and I never carry balances. In my area, I can get a 1bd/1ba condo for 0k, HOA fees approx 0/mo. If I apply for a 30yr mortgage, according to the calculators my monthly payment can range 0-730. I will only have the k from savings to put down though. But with Obama’s k incentive…. do you think I should even be thinking about buying? I would just really like to have a “home” and not have to apartment-hop after every lease due to management, move furniture, not allowed pets or this or that anymore.

Would they even look at me if I walked into a bank to ask about my loan eligibility?

TIA. Advice from loan officers or those experienced in mortgages are greatly appreciated!
I want to add that I would do the FHA.
- ANSWER:
  You can ask but you need 2 years work and tax returns to prove it, yes you are doing good but in school with no work record so they will look at it as yes it is good now, but what of the next year or so
QUESTION:
What is “total wages, salary, and tips (excluding bonuses) you expect to receive in 2010″?
What is “total wages, salary, and tips (excluding bonuses) you expect to receive in 2010″?
I am trying to use the withholding Calculator from the IRS web page and it asks to: “Enter the total wages, salary, and tips (excluding bonuses) you expect to receive in 2010″….I am trying to figure out if this would be the gross pay or the taxable wages since below it asks to “Enter the total Federal income tax withheld to date in 2010″, “Enter your total 2010 contribution to a tax-deferred retirement plan, FSA or HSA.”

I don’t want to be doubling my deductions. Has anybody use this calculator and does anybody know if it should be the gross pay or taxable wages??
16 minutes ago – 4 days left to answer.
- ANSWER:
  that would be located in Box # 1 on your W-2

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