{"id":187,"date":"2017-11-06T21:36:31","date_gmt":"2017-11-06T21:36:31","guid":{"rendered":"http:\/\/wyomingtraining.com\/subject-matter-minute-blog\/?p=187"},"modified":"2017-11-06T21:36:31","modified_gmt":"2017-11-06T21:36:31","slug":"subject-matter-minute-episode-9-retirement-goal-calculator","status":"publish","type":"post","link":"http:\/\/wyomingtraining.com\/subject-matter-minute-blog\/subject-matter-minute-episode-9-retirement-goal-calculator\/","title":{"rendered":"Subject Matter Minute, Episode #9 – Retirement Goal Calculator"},"content":{"rendered":"

The below post is taken from the Video Blog, the Subject Matter Minute. If it’s a little hard to read, it’s because it’s taken from the spoken word. You can view the episode on YouTube if you would like. Find it here:\u00a0Episode #9 –\u00a0Retirement Goal Calculator<\/a>.<\/em><\/p>\n

If YouTube is blocked for you or your agency, you can scroll to the bottom of this post to view it from Google Drive.<\/em><\/strong><\/p>\n

You can also listen to an audio version: Episode #9: <\/a>Retirement Goal Calculator<\/a>.<\/p>\n

 <\/p>\n

Welcome to another episode of the subject matter minute. I’m Matt Nagy, thanks for joining me.<\/p>\n

Sometimes here I say “hello\u00a0fellow state of Wyoming employees,” but I
\ngot to admit, I’m feeling a little bit\u00a0lonely right now. Last episode, I asked
\nyou guys to post your favorite hair band, or a hair band concert from the 80s down below, and I got exactly zero responses. So it could be a couple things here…either I am the only gen Xer out of the\u00a0900 or so of you that watched the video, or perhaps you’re embarrassed to admit that\u00a0you liked hair bands back then? I know there’s a lot of people that make fun of\u00a0that era but you know music is what it is… If it makes you feel good\u00a0you like it, and it made me feel good. I loved it!<\/p>\n

So you can go back to that episode and comment if you want to or,
\nyou know, no pressure… you don’t have to\u00a0do that at all, but I’m hoping I’m not the only gen Xer out there!<\/p>\n

Before I go on I want to thank last month’s subject matter expert, which again was EGI. Thanks guys for getting me the information.<\/p>\n

Today’s\u00a0subject is actually a tool. I’m going to show you the retirement goal calculator!<\/p>\n

The retirement goal calculator. This is a sweet tool put out by the Wyoming\u00a0retirement system just a month or two ago that can help you decide if you have\u00a0enough money saved for retirement. Obviously, this\u00a0month’s subject matter expert is the Wyoming Retirement System. Specifically\u00a0Polly Scott. She was the one who pointed me in the right direction for this and thought that this would be a great thing to show you guys first. And, she answered some\u00a0of my questions, so thanks Polly for helping me out!<\/p>\n

I’m gonna take you there, show you how to do it, and run you through a couple scenarios. The\u00a0nice thing about this thing is that it’s simple and that you don’t have to go\u00a0find your taxes and financial information and input all this stuff. It\u00a0does some figuring for you and it keeps it simple.<\/p>\n

Here’s the retirement goal calculator. You find it by going to this URL: http:\/\/retirement.state.wy.us\/en\/DC\/Goal-Calculator<\/a> Once you get there scroll\u00a0on down. It’s really quite straightforward. I’m gonna throw in some numbers just to\u00a0show you how it works.<\/p>\n

\"First<\/a>
Please click image for larger version<\/figcaption><\/figure>\n

Let’s just say my current annual income before\u00a0taxes is $45,000. That’s your annual\u00a0<\/strong>income. I’m pretty sure that I’m\u00a0gonna need 90% of that in retirement. How many years until you\u00a0retire? Basically it’s about 15 years in reality so let’s put that in. How many years do you estimate that you’ll be retired? Well, considering that\u00a0I have a 99 year old grandpa who is still building houses at this point I’m\u00a0gonna say at least thirty. Thirty is the max in this calculator. Once you fill those\u00a0in you can see your retirement goal is $40,500, which is\u00a0ninety percent of $45,000.<\/p>\n

\"\"<\/a>
Please click image to see larger version<\/figcaption><\/figure>\n

Let’s go to the next step. This is social security. This is kind of an estimate, but as you\u00a0can see here, it gives you some numbers. Mine’s between twenty and fifty\u00a0thousand, so let’s just say that maybe you know my income will go up a little bit\u00a0and by then I’ll have fifty thousand a year… let’s say twenty five percent. Now you can see once you do that it fills in a little bit of this graph over\u00a0here. So right now you’re getting $11,250 a\u00a0year. You haven’t quite made it there.<\/p>\n

Now let’s go to the next step. At retirement, how many years will you have been employed? Basically, I\u00a0will have been employed 33 years if I stick it out with\u00a0the state. This is the one thing you do need to know…\u00a0 which\u00a0tier you are in. I’m a Tier two employee because I came in late.<\/p>\n

\"\"<\/a>
Please click on image to see a larger version<\/figcaption><\/figure>\n

Oh my! Based on my inputs, I should exceed my desired income! You can see it right here… my retirement goal was $40,500, and my estimated retirement\u00a0income will be $40,950. That’s\u00a0basically because of the years of service.<\/p>\n

\"\"<\/a>
Please click on the image to see a larger version<\/figcaption><\/figure>\n

Now I’m gonna\u00a0adjust my goal. This time let’s do a scenario where I am not saving enough\u00a0money and will need to save more. Let’s do $45,000 here. Let’s say that\u00a0I want a hundred percent of my income. I’m going to still say fifteen years\u00a0till I retire and I’m still going to want that to last thirty years.<\/p>\n

\"\"<\/a>
Please click on image to see a larger version<\/figcaption><\/figure>\n

Let’s go to\u00a0the next step. Let’s do the same thing here… 25 percent.<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

\"\"<\/a>
Please click on image to see a larger version<\/figcaption><\/figure>\n

Next step. Let’s\u00a0just say that I’ll only have been employed for twelve years, and that I’m\u00a0still a tier two employee.<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

\"\"<\/a>
Please click on image to see a larger version<\/figcaption><\/figure>\n

Next step. Now there’s\u00a0another step that wasn’t there when I was saving enough money. Now they want to know\u00a0how much you’ve saved in retirement on the side. I’m gonna say $10,000 in\u00a0an IRA or something like that. You know the rate of return is usually like 7% to 8%, let’s just say 6% to be safe.<\/p>\n

\"\"<\/a>
Please click on image to see a larger version<\/figcaption><\/figure>\n

Next step. Okay, I have not saved enough money by any means! You can see that I’m\u00a0about halfway there. When I retire I’m only gonna be making $22,000 every year and it gives you\u00a0a number that you’ll need to save every month until retirement. Hopefully\u00a0yours isn’t nearly as shocking as that number!<\/p>\n

So run some scenarios, change up how many years you work for\u00a0the state or how much retirement you have saved on the side, or whatever… just\u00a0run some numbers and see where you’re at. Hopefully this will help you out.<\/p>\n

I hope you found the retirement goal calculator useful. Hopefully when\u00a0you put your numbers in there you were really close to having what you need or\u00a0maybe even over, and if not, you know you can talk to the retirement folks about\u00a0the deferred compensation, or\u00a0find some other way to invest the money.<\/p>\n

Thanks again to Polly Scott of the Wyoming retirement system! I want to thank her for getting me the information, and for putting together the
\ncalculator, and I’m sure we’ll be talking\u00a0to her a lot more down the road about more stuff! That’s it for this subject\u00a0matter minute, have a great day and we’ll see you next time!<\/p>\n