Retirement planning IQ test for the month of April 2016. Enjoy it, it’s easy! Taking IQ test like this will increase your knowledge about retirement planning. If you don’t know how much money required to save every monthto retire comfortable, let this test give you an idea.
Assuming you are 30 years old now and want to have a retirement funds amounting to $500,000 at age 60. You still have 3o years preparation, right? If you are earning $30,000 per year and saving 20% of it every year, what is the total money saved in 30 years?
A. $185,000 (one hundred eighty five thousand dollars)
B. $190,000 (one hundred ninety thousand dollars)
C. $280,000 (two hundred eighty thousand dollars)
D. $180,000 (one hundred eighty thousand dollars)
Retirement Planning IQ Test for the Month of April 2016
Here is the explanation;
Twenty percent of $30,000 is $6,000. While saving $6,000 within 30 years will help you obtain ____. What if you want to save $500,000 at the age of 60?
You just make sure you invest money that earns enough interest to accumulate your target amount. Be sure to invest money that earns reasonable interest. The suggested interested rates must be at least 8% per year. Or at least 3 to 4 percent higher than the inflation rate.
If you want to have a total savings amounting to $500,000 at the age 60, you must save at least $1,400 per month within 30 years. But, when you invest $1,400 per month that earns interest within 3o years, the interest earned and the total savings will help you have a solid retirement funds.
- Do know how much money to save to retire comfortably.
- Analyze your retirement plans. It will give you an idea on how much money to save every month.
- Do include the inflation rate and taxes when creating retirement plans.
- Do not forget to take high risks while you are young and take low risk when you are old. Take some time to analyze your risks profile.
- Ensure you have retirement earning asset. This asset will take your place to work for you when you retire. The idea is to make the money work for you when you stop working.
Leave your answer in the comment box. For more Retirement Planning IQ test, visit this blog or browse our articles in the retirement planning section. Thanks!