Budget Project Part 1 Savings Enough To Cover Expenditures

Budget Project Part 1
It is essential to evaluate and create a retirement plan as early as possible in life. This is to make sure that one’s savings are enough to cover for both the expenditures after retirement and contingencies that could come after. Taking into account the needs for my family’s finances in the future, I believe that it would be best to save as early as possible, yet start with investing after every significant investment (house, college education, and car loans) are all paid for (CNN.com, n.d.). As of today, the median annual salary for my field amounts to $50,000 per year, which is an amount close enough to what I’m getting. Assuming that 8% of this amount is allotted for my retirement savings, it is estimated that before the age of 50 – the time where I would start investing – I would have a total of $100,000. Notably, this amount is dedicated to establishing a more secure financial base rather than one that is focused on growth. Nonetheless, I believe that this would be more than enough because my planned retirement age is 67 giving me an allowance of 17 years to focus on growth for my money. Using a retirement calculator, these amounts show that my savings would be enough until the age of 74, which is near the lifespan of a most middle-class Americans (Khazan, 2017). Mainly speaking, I want to focus my initial $100,000 of savings in 401k’s on making sure that it is secure. By the age of 50, these savings would be shifted towards growth-oriented stocks that would help me make the most of my savings.
Aside from planning one’s retirement expenses, I believe that is also important to ensure how one’s assets would be distributed in the case when something unexpected happens. This shows how crucial it is for a person to do estate planning carefully. In order to do so, I listed down my family members, including my wife and my kids in my estate plan. My family are the people whom I support, as they would surely need the finances if in any ca...