Please watch this video before proceeding to the next topic and marking as “Completed”
All right. So I know you’re waiting and I know you want to calculate your number. So let’s take out our workbooks right now and let’s calculate what your retirement number could be. Let’s go to the slide and calculate your current retirement assessment. Okay, so we’re going to figure out what your retirement number is. Let’s use a hypothetical example and let’s take the age of the oldest person that you know. And subtract from that the year that you want to retire. We’ll put those in the first two boxes on top, and then we’ll do the math, 100 minus 65. If you want to retire at age 65, and you know, someone that lived to be age 100 and our hypothetical example, would be 35 years that you need to create retirement income for yourself in retirement, once you flip the switch and you start your income from your sources that you’ve saved to get to retirement. If we see in these two boxes on the lower left corner, that if we need $60,000 in income, and we have $30,000 in guaranteed income sources, our social security or perhaps are self-directed pensions that we set up, then our annual guaranteed income gap or shortfall in this example is $30,000 a year. So now we multiply that $30,000 times our number of years that we need that income for retirement. And then don’t forget, we have to factor in inflation also because things will cost more in the future than they cost today.