Developing Your Retirement Plan 57 Step Five: Identify and Project Your Current Retirement Resources We identified earlier some resources that John can use to achieve his retirement goal. Unless he plans on parking his 401(k), IRA, and other retirement savings in the mattress for the next 26 years, that money should grow. In most cases, it will grow a lot! But how much? It all depends upon how he invests his money. As John listed on his "What Do I Have?" worksheet, he has \$42,000 in his 401(k) plan, \$15,000 in IRAs and other retirement savings, and \$16,000 in personal savings, for a total of \$73,000. How much will that money grow by the time he needs it for retirement? Figure 5.9 shows compounding growth factors for any dollar amount on an annual basis for up to 40 years, for rates between 4 and 12 percent. Figure 5.9. John figures he can average about an 8 percent return on his investments over the next 26 years. So, he finds the cell where the row for 26 years intersects the 8 percent column. The growth factor is 7.40, which he uses to multiply his \$73,000 total retirement savings in Figure 5.10.