Sandra's Story
Like 87% of women, Sandra wants help with her money.
She has the sense that she needs to do something with her money
but doesn't trust that the banks have her best interests in mind.
She's wondering what she can afford, and if she'll be okay.
years old
Per month (take home)
Per month
Per month
These are Sandra's numbers. Let's look at how we use this information below:
Sandra's NOW Money
What's left over is Flex Money. This is the money that
Flex Money
(20% minimum, if possible)
= $ 800 / month
= $ 184 / week
= $ 26.00 / day
= $ 4.80 / workhour
This is the money that comes into her bank account on a regular basis.
We're going to start filling it up with where Sandra spends her money.
Retirement Contributions
$ 1000 / mon
Committed Money
$ 2,000 / mon
Minimum Debt
$ 200 / mon
Sandra's NOW Money
At a 6% rate of return (getting her money working harder), there are 2 things you'll want to noitce in Sandra's NOW Money.
1. The amount Sandra puts towards retirement has decreased from
$1,000 / month to $767 / month,
2. Sandra's Flex Money has increased from $800 / month to $1,033 / month which. means she has more money to spend on food, clothes, gifts & all the things!
Flex Money
(20% minimum, if possible)
= $ 1 ,033 / month
= $ 237 / week
= $ 33.96 / day
= $ 6.20 / workhour
Retirement Contributions
$ 767 / mon
Life Happens Contributions
-
Comitted Money
$ 2,000 / mon
Minimum Debt
$ 200 / mon
Sandra's Retirement Money Needs
In an ideal situation where Sandra wants to maintain her current lifestyle
during retirement, we estimate Sandra will need:
Retirement Target:
$1,619,210
OR
$1,135 / month
@ 2% inflation
Sandra's FUTURE Money - Current Projection
We'll start with a 4.5% rate of return on her investments because this is what most women get.
Based on her NOW money, plus any current retirement money, we estimate that at retirement, Sandra will have:
Projected totals:
$1,590,570
98% of target
OR
@ 2% inflation
@ 4.5% return on her investments
Investment Earnings
This is Sandra's Money Working for her
@4.5%
Predicted Need
For Sandra to live the same life she leads today.
Future Money from Budget
$428 / month
This is what Sandra can afford with her NOW Money.
NOTE: As she pays down debt, that money also goes towards her future money.
Now, let's see what happens if Sandra gets her money working a little harder for her.
Sandra's FUTURE Money - Current Projection
Notice two really important things:
1. Not only does Sandra fully fund her retirement, but also
2. notice that her Flex Money has increased!
Projected totals:
$1,619,210
100% of target
OR
@ 2% inflation
@ 6% return on her investments
Scroll down to compare Sandra's two scenarios.
Sandra's FUTURE Money
Sandra's NOW Money
Base case using 4.5% return on investments before retirement.
Flex Money
(20% minimum, if possible)
= $ 800 / month
Retirement
Contributions
= $ 1,000 / month
Committed Money
= $ 2,000 / month
Minimum Debt
= $ 200 / mo
Projected totals:
$1,590,570
OR
98% of target
@ 2% inflation
Increasing rate of return before retirement to 6%.
NOTICE: Not only does Sandra fully fund her retirment,
but notice that her Flex Money has also increased!!
Flex Money
= $ 1,033 / month
Retirement
Contributions
= $ 767/ month
Committed Money
= $ 2,000 / month
Minimum Debt
$ 200 / mo
Projected totals:
$1,619,210
OR
100% of target
@ 2% inflation
