Tools for this activity:
Go to www.foundationsu.com and click on TOOLS > INVESTING CALCULATOR.
Scenario – Krystal’s Retirement Goal
Krystal is 47 years old and single. She is a high school principal, making $75,000 a year. She currently owns a 401(k) valued at $85,000. Krystal would like to retire at age 65 with $1.2 million in her retirement nest egg. She plans to contribute $12,000 a year to her retirement fund, growing at 10%.
1. What will her nest egg be at retirement using the current numbers from above?
2. If she doesn’t have enough to reach her goal, what needs to change in order for her to reach her goal?
3. Click on one of the options to give up something (daily coffee, eating out for lunch), what could her retirement nest egg be? What did you click on?
4. What if she gave up two or more of the items, what could her nest egg be?
5. What advice would you give her to make sure she stays on track?