Your Number - Essay Example

Your Number Client’s School Affiliation What is your "number"? This is actually the estimate amount of money that you need to save when you reach your retirement. According to Lee Eisenberg, former Esquire editor-in-chief, “The Number” is important for most people, it represents great life without financial stress (Mark Ford, 2012). By doing this, it would be easier to make a savings. At first, we need to have as what we called “Your Number” for us to get started. Just provide all the details needed to have our number.

And the number we got base on the information gathered is $1,888.416.00. The reason why this might cause to be higher it is because at the span of the current age and the retirement year is not that long. According to Peggy Lebenson, Senior Vice President for Financial Services at Harris Interactive, “On average, those who are planning for retirement began to do so at the age of 32”. (Cited in OfficePro, 2008, p12-12, 2/3p). Base on the review, if you plan to retire at an early age, you should start planning what you need to save or invest so that your number could’ve been lowered down and will have much time and money to save.

Since planning to retire at the age of 65 and currently the age is at 52, the average annual return that we need to invest is approximately $5,040.00 annually and could cost $420.00 monthly for 15 years. In order to achieve this rate in return, you need to achieve 11.78% to reach this objective, which are base on the 3.00% inflation rate. Assuming an inflation rate of 3.00%, the assumption rate of 3.00% is not realistic however, because central banks are expanding the money supply at double rates (Ttrimm, 2012).

All of these calculations are mainly based on The Number that reference to the current age and the desired age of retirement; this information does not serve, as the accurate calculation when retiring in the future; this is only hypothetical analysis based on the information provided. References Mark Ford (2012, March 22). Whats Your Magic Number? Message posted to http://www.earlytorise.com/retirement-planning Lebenson, Peggy. (Aug/Sep2008). Retirement---Planning. OfficePro, Vol.68 Issue 6, p12-12, 2/3p.

Retrieved from http://search.ebscohost.com Trimm, Meg, & Spyagent. (19, April2012). How to calculate How Much Money You Need to Retire WIKIHOW. Retrieved from http://www.wikihow.com/Calculate-How-Much-Money-You-Need-to-Retire