401(k) worksheet

1. Balance at age 75: $2,619,866.75

1. Count how many years you have to save before you retire

   $75-32$$=43$

2. Find what you put in the first year: 7% of your salary

   $\mathrm{\$54,000.00}\times \mathrm{7\%}$$=\mathrm{\$3,780.00}$

3. Add your employer's match: 34% of what you put in, counting only up to 6% of your salary

   $\mathrm{34\%}\times \mathrm{\$3,240.00}$$=\mathrm{\$1,101.60}$

4. Grow the balance by the yearly return, then add this year's money from you and your employer

   $\text{balance after year 1}$$=\mathrm{\$28,000.00}\times \left(1+0.07\right)+\mathrm{\$3,780.00}+\mathrm{\$1,101.60}$$=\mathrm{\$34,841.60}$

5. Repeat that for 43 years, with your salary rising 4% a year

   $\text{balance at age 75}$$=\mathrm{\$2,619,866.75}$

6. See where the money came from: your starting balance, what you put in, the match and investment growth

   $\mathrm{\$28,000.00}+\mathrm{\$415,846.80}+\mathrm{\$121,189.64}+\mathrm{\$2,054,830.31}$$=\mathrm{\$2,619,866.75}$

7. Find what it's worth in today's dollars by dividing out the price rises over the same years

   $\frac{\mathrm{\$2,619,866.75}}{{\left(1+0.021\right)}^{43}}$$=\mathrm{\$1,071,944.48}$

8. Estimate your first-year retirement income by taking out 4% of the balance in today's dollars

   $\mathrm{\$1,071,944.48}\times \mathrm{4\%}$$=\mathrm{\$42,877.78}$

9. Divide that yearly income by 12 to see it as a monthly amount

   $\frac{\mathrm{\$42,877.78}}{12}$$=\mathrm{\$3,573.15}$

2. Balance at age 90: $11,273,731.90

1. Count how many years you have to save before you retire

   $90-34$$=56$

2. Find what you put in the first year: 9% of your salary

   $\mathrm{\$85,000.00}\times \mathrm{9\%}$$=\mathrm{\$7,650.00}$

3. Add your employer's match: 62% of what you put in, counting only up to 5% of your salary

   $\mathrm{62\%}\times \mathrm{\$4,250.00}$$=\mathrm{\$2,635.00}$

4. Grow the balance by the yearly return, then add this year's money from you and your employer

   $\text{balance after year 1}$$=\mathrm{\$29,000.00}\times \left(1+0.07\right)+\mathrm{\$7,650.00}+\mathrm{\$2,635.00}$$=\mathrm{\$41,315.00}$

5. Repeat that for 56 years, with your salary rising 3% a year

   $\text{balance at age 90}$$=\mathrm{\$11,273,731.90}$

6. See where the money came from: your starting balance, what you put in, the match and investment growth

   $\mathrm{\$29,000.00}+\mathrm{\$1,054,335.96}+\mathrm{\$371,940.18}+\mathrm{\$9,818,455.76}$$=\mathrm{\$11,273,731.90}$

7. Find what it's worth in today's dollars by dividing out the price rises over the same years

   $\frac{\mathrm{\$11,273,731.90}}{{\left(1+0.016\right)}^{56}}$$=\mathrm{\$4,634,683.24}$

8. Estimate your first-year retirement income by taking out 4% of the balance in today's dollars

   $\mathrm{\$4,634,683.24}\times \mathrm{4\%}$$=\mathrm{\$185,387.33}$

9. Divide that yearly income by 12 to see it as a monthly amount

   $\frac{\mathrm{\$185,387.33}}{12}$$=\mathrm{\$15,448.94}$

3. Balance at age 74: $1,863,165.79

1. Count how many years you have to save before you retire

   $74-32$$=42$

2. Find what you put in the first year: 9% of your salary

   $\mathrm{\$65,000.00}\times \mathrm{9\%}$$=\mathrm{\$5,850.00}$

3. Add your employer's match: 44% of what you put in, counting only up to 7% of your salary

   $\mathrm{44\%}\times \mathrm{\$4,550.00}$$=\mathrm{\$2,002.00}$

4. Grow the balance by the yearly return, then add this year's money from you and your employer

   $\text{balance after year 1}$$=\mathrm{\$22,500.00}\times \left(1+0.05\right)+\mathrm{\$5,850.00}+\mathrm{\$2,002.00}$$=\mathrm{\$31,477.00}$

5. Repeat that for 42 years, with your salary rising 3% a year

   $\text{balance at age 74}$$=\mathrm{\$1,863,165.79}$

6. See where the money came from: your starting balance, what you put in, the match and investment growth

   $\mathrm{\$22,500.00}+\mathrm{\$479,835.70}+\mathrm{\$164,210.44}+\mathrm{\$1,196,619.65}$$=\mathrm{\$1,863,165.79}$

7. Find what it's worth in today's dollars by dividing out the price rises over the same years

   $\frac{\mathrm{\$1,863,165.79}}{{\left(1+0.024\right)}^{42}}$$=\mathrm{\$688,102.79}$

8. Estimate your first-year retirement income by taking out 4% of the balance in today's dollars

   $\mathrm{\$688,102.79}\times \mathrm{4\%}$$=\mathrm{\$27,524.11}$

9. Divide that yearly income by 12 to see it as a monthly amount

   $\frac{\mathrm{\$27,524.11}}{12}$$=\mathrm{\$2,293.68}$

4. Balance at age 50: $189,965.88

1. Count how many years you have to save before you retire

   $50-36$$=14$

2. Find what you put in the first year: 8% of your salary

   $\mathrm{\$65,000.00}\times \mathrm{8\%}$$=\mathrm{\$5,200.00}$

3. Add your employer's match: 38% of what you put in, counting only up to 5% of your salary

   $\mathrm{38\%}\times \mathrm{\$3,250.00}$$=\mathrm{\$1,235.00}$

4. Grow the balance by the yearly return, then add this year's money from you and your employer

   $\text{balance after year 1}$$=\mathrm{\$20,000.00}\times \left(1+0.05\right)+\mathrm{\$5,200.00}+\mathrm{\$1,235.00}$$=\mathrm{\$27,435.00}$

5. Repeat that for 14 years, with your salary rising 3% a year

   $\text{balance at age 50}$$=\mathrm{\$189,965.88}$

6. See where the money came from: your starting balance, what you put in, the match and investment growth

   $\mathrm{\$20,000.00}+\mathrm{\$88,848.89}+\mathrm{\$21,101.61}+\mathrm{\$60,015.38}$$=\mathrm{\$189,965.88}$

7. Find what it's worth in today's dollars by dividing out the price rises over the same years

   $\frac{\mathrm{\$189,965.88}}{{\left(1+0.024\right)}^{14}}$$=\mathrm{\$136,293.83}$

8. Estimate your first-year retirement income by taking out 4% of the balance in today's dollars

   $\mathrm{\$136,293.83}\times \mathrm{4\%}$$=\mathrm{\$5,451.75}$

9. Divide that yearly income by 12 to see it as a monthly amount

   $\frac{\mathrm{\$5,451.75}}{12}$$=\mathrm{\$454.31}$

5. Balance at age 50: $120,868.56

1. Count how many years you have to save before you retire

   $50-40$$=10$

2. Find what you put in the first year: 10% of your salary

   $\mathrm{\$45,000.00}\times \mathrm{10\%}$$=\mathrm{\$4,500.00}$

3. Add your employer's match: 55% of what you put in, counting only up to 6% of your salary

   $\mathrm{55\%}\times \mathrm{\$2,700.00}$$=\mathrm{\$1,485.00}$

4. Grow the balance by the yearly return, then add this year's money from you and your employer

   $\text{balance after year 1}$$=\mathrm{\$24,000.00}\times \left(1+0.05\right)+\mathrm{\$4,500.00}+\mathrm{\$1,485.00}$$=\mathrm{\$31,185.00}$

5. Repeat that for 10 years, with your salary rising 2% a year

   $\text{balance at age 50}$$=\mathrm{\$120,868.56}$

6. See where the money came from: your starting balance, what you put in, the match and investment growth

   $\mathrm{\$24,000.00}+\mathrm{\$49,273.74}+\mathrm{\$16,260.34}+\mathrm{\$31,334.48}$$=\mathrm{\$120,868.56}$

7. Find what it's worth in today's dollars by dividing out the price rises over the same years

   $\frac{\mathrm{\$120,868.56}}{{\left(1+0.028\right)}^{10}}$$=\mathrm{\$91,702.72}$

8. Estimate your first-year retirement income by taking out 4% of the balance in today's dollars

   $\mathrm{\$91,702.72}\times \mathrm{4\%}$$=\mathrm{\$3,668.11}$

9. Divide that yearly income by 12 to see it as a monthly amount

   $\frac{\mathrm{\$3,668.11}}{12}$$=\mathrm{\$305.68}$

6. Balance at age 66: $411,808.83

1. Count how many years you have to save before you retire

   $66-45$$=21$

2. Find what you put in the first year: 7% of your salary

   $\mathrm{\$66,000.00}\times \mathrm{7\%}$$=\mathrm{\$4,620.00}$

3. Add your employer's match: 60% of what you put in, counting only up to 4% of your salary

   $\mathrm{60\%}\times \mathrm{\$2,640.00}$$=\mathrm{\$1,584.00}$

4. Grow the balance by the yearly return, then add this year's money from you and your employer

   $\text{balance after year 1}$$=\mathrm{\$27,500.00}\times \left(1+0.06\right)+\mathrm{\$4,620.00}+\mathrm{\$1,584.00}$$=\mathrm{\$35,354.00}$

5. Repeat that for 21 years, with your salary rising 3% a year

   $\text{balance at age 66}$$=\mathrm{\$411,808.83}$

6. See where the money came from: your starting balance, what you put in, the match and investment growth

   $\mathrm{\$27,500.00}+\mathrm{\$132,485.36}+\mathrm{\$45,423.55}+\mathrm{\$206,399.92}$$=\mathrm{\$411,808.83}$

7. Find what it's worth in today's dollars by dividing out the price rises over the same years

   $\frac{\mathrm{\$411,808.83}}{{\left(1+0.032\right)}^{21}}$$=\mathrm{\$212,530.87}$

8. Estimate your first-year retirement income by taking out 4% of the balance in today's dollars

   $\mathrm{\$212,530.87}\times \mathrm{4\%}$$=\mathrm{\$8,501.23}$

9. Divide that yearly income by 12 to see it as a monthly amount

   $\frac{\mathrm{\$8,501.23}}{12}$$=\mathrm{\$708.44}$

7. Balance at age 72: $2,212,463.45

1. Count how many years you have to save before you retire

   $72-35$$=37$

2. Find what you put in the first year: 8% of your salary

   $\mathrm{\$72,500.00}\times \mathrm{8\%}$$=\mathrm{\$5,800.00}$

3. Add your employer's match: 46% of what you put in, counting only up to 8% of your salary

   $\mathrm{46\%}\times \mathrm{\$5,800.00}$$=\mathrm{\$2,668.00}$

4. Grow the balance by the yearly return, then add this year's money from you and your employer

   $\text{balance after year 1}$$=\mathrm{\$21,000.00}\times \left(1+0.07\right)+\mathrm{\$5,800.00}+\mathrm{\$2,668.00}$$=\mathrm{\$30,938.00}$

5. Repeat that for 37 years, with your salary rising 3% a year

   $\text{balance at age 72}$$=\mathrm{\$2,212,463.45}$

6. See where the money came from: your starting balance, what you put in, the match and investment growth

   $\mathrm{\$21,000.00}+\mathrm{\$383,810.49}+\mathrm{\$176,552.83}+\mathrm{\$1,631,100.14}$$=\mathrm{\$2,212,463.45}$

7. Find what it's worth in today's dollars by dividing out the price rises over the same years

   $\frac{\mathrm{\$2,212,463.45}}{{\left(1+0.031\right)}^{37}}$$=\mathrm{\$714,999.09}$

8. Estimate your first-year retirement income by taking out 4% of the balance in today's dollars

   $\mathrm{\$714,999.09}\times \mathrm{4\%}$$=\mathrm{\$28,599.96}$

9. Divide that yearly income by 12 to see it as a monthly amount

   $\frac{\mathrm{\$28,599.96}}{12}$$=\mathrm{\$2,383.33}$

8. Balance at age 57: $320,211.30

1. Count how many years you have to save before you retire

   $57-37$$=20$

2. Find what you put in the first year: 7% of your salary

   $\mathrm{\$52,500.00}\times \mathrm{7\%}$$=\mathrm{\$3,675.00}$

3. Add your employer's match: 50% of what you put in, counting only up to 4% of your salary

   $\mathrm{50\%}\times \mathrm{\$2,100.00}$$=\mathrm{\$1,050.00}$

4. Grow the balance by the yearly return, then add this year's money from you and your employer

   $\text{balance after year 1}$$=\mathrm{\$25,000.00}\times \left(1+0.06\right)+\mathrm{\$3,675.00}+\mathrm{\$1,050.00}$$=\mathrm{\$31,225.00}$

5. Repeat that for 20 years, with your salary rising 4% a year

   $\text{balance at age 57}$$=\mathrm{\$320,211.30}$

6. See where the money came from: your starting balance, what you put in, the match and investment growth

   $\mathrm{\$25,000.00}+\mathrm{\$109,434.44}+\mathrm{\$31,266.98}+\mathrm{\$154,509.88}$$=\mathrm{\$320,211.30}$

7. Find what it's worth in today's dollars by dividing out the price rises over the same years

   $\frac{\mathrm{\$320,211.30}}{{\left(1+0.032\right)}^{20}}$$=\mathrm{\$170,546.46}$

8. Estimate your first-year retirement income by taking out 4% of the balance in today's dollars

   $\mathrm{\$170,546.46}\times \mathrm{4\%}$$=\mathrm{\$6,821.86}$

9. Divide that yearly income by 12 to see it as a monthly amount

   $\frac{\mathrm{\$6,821.86}}{12}$$=\mathrm{\$568.49}$

9. Balance at age 85: $2,360,956.09

1. Count how many years you have to save before you retire

   $85-42$$=43$

2. Find what you put in the first year: 9% of your salary

   $\mathrm{\$65,000.00}\times \mathrm{9\%}$$=\mathrm{\$5,850.00}$

3. Add your employer's match: 55% of what you put in, counting only up to 6% of your salary

   $\mathrm{55\%}\times \mathrm{\$3,900.00}$$=\mathrm{\$2,145.00}$

4. Grow the balance by the yearly return, then add this year's money from you and your employer

   $\text{balance after year 1}$$=\mathrm{\$20,000.00}\times \left(1+0.05\right)+\mathrm{\$5,850.00}+\mathrm{\$2,145.00}$$=\mathrm{\$28,995.00}$

5. Repeat that for 43 years, with your salary rising 4% a year

   $\text{balance at age 85}$$=\mathrm{\$2,360,956.09}$

6. See where the money came from: your starting balance, what you put in, the match and investment growth

   $\mathrm{\$20,000.00}+\mathrm{\$643,572.43}+\mathrm{\$235,976.56}+\mathrm{\$1,461,407.09}$$=\mathrm{\$2,360,956.09}$

7. Find what it's worth in today's dollars by dividing out the price rises over the same years

   $\frac{\mathrm{\$2,360,956.09}}{{\left(1+0.024\right)}^{43}}$$=\mathrm{\$851,510.04}$

8. Estimate your first-year retirement income by taking out 4% of the balance in today's dollars

   $\mathrm{\$851,510.04}\times \mathrm{4\%}$$=\mathrm{\$34,060.40}$

9. Divide that yearly income by 12 to see it as a monthly amount

   $\frac{\mathrm{\$34,060.40}}{12}$$=\mathrm{\$2,838.37}$

10. Balance at age 48: $120,704.30

1. Count how many years you have to save before you retire

   $48-40$$=8$

2. Find what you put in the first year: 7% of your salary

   $\mathrm{\$66,000.00}\times \mathrm{7\%}$$=\mathrm{\$4,620.00}$

3. Add your employer's match: 55% of what you put in, counting only up to 6% of your salary

   $\mathrm{55\%}\times \mathrm{\$3,960.00}$$=\mathrm{\$2,178.00}$

4. Grow the balance by the yearly return, then add this year's money from you and your employer

   $\text{balance after year 1}$$=\mathrm{\$18,000.00}\times \left(1+0.09\right)+\mathrm{\$4,620.00}+\mathrm{\$2,178.00}$$=\mathrm{\$26,418.00}$

5. Repeat that for 8 years, with your salary rising 4% a year

   $\text{balance at age 48}$$=\mathrm{\$120,704.30}$

6. See where the money came from: your starting balance, what you put in, the match and investment growth

   $\mathrm{\$18,000.00}+\mathrm{\$42,569.73}+\mathrm{\$20,068.58}+\mathrm{\$40,065.99}$$=\mathrm{\$120,704.30}$

7. Find what it's worth in today's dollars by dividing out the price rises over the same years

   $\frac{\mathrm{\$120,704.30}}{{\left(1+0.032\right)}^8}$$=\mathrm{\$93,817.78}$

8. Estimate your first-year retirement income by taking out 4% of the balance in today's dollars

   $\mathrm{\$93,817.78}\times \mathrm{4\%}$$=\mathrm{\$3,752.71}$

9. Divide that yearly income by 12 to see it as a monthly amount

   $\frac{\mathrm{\$3,752.71}}{12}$$=\mathrm{\$312.73}$