PERA PALAGUIN SEMINAR WORKSHOP
WORKSHEET NO. 1: NET WORTH PLANNING
RETIREMENT AGE
YOUR AGE NOW
NO. OF YEARS TO BUILD RETIREMENT
(Retirement Age LESS your Age Now)
INFLATION RATE ESTIMATE
5%
GROSS SALARY TODAY
X
FACTOR TO BE USED (TO MULTIPLY)
(look at page 68; 5% and no. of years to build your retirement)
MONTHLY SALARY UPON RETIREMENT
TIMES 12
YEARLY SALARY UPON RETIREMENT
(multiply by 12 months)
EARNING RATE DURING RETIREMENT
10%
TARGET EARNING ASSET
(Yearly Salary Upon Retirement DIVIDED BY Earning Rate During Retirement)
EARNING/INTEREST EARNING RANGE TABLE
AGE
NET
EARNING RATE
21 to 30 years old
18% TO 20%
31 to 40 years old
15% TO 18%
41 to 50 years old
12% TO 15%
51 to 65 years old
10% TO 12%
Retirement Age
8% TO 10%
Choose an earning rate based on your age range
FACTOR TO BE USED (TO DIVIDE)
(Look at page 70; Eraning Rate and No. or Years to Build Your Retirement)
REQUIRED YEARLY SAVINGS
(Target Earning Asset DIVIDED BY Factor Found on Page 70)
DIVIDED BY 12
REQUIRED MONTHLY SAVINGS
(Required Yearly Savings DIVIDED BY 12)