Happy, Birthday, Barbie!
On March 9th, 2017 Barbie celebrated her 58th birthday. Whether you loved Barbie as a little girl or thought she was a negative role model for women, there is no denying her part in women’s toy history. Ruth Handler created the Barbie doll and co-founded Mattel, Inc. with her husband when she saw her daughter choose paper dolls of grown-up women over baby dolls. Ruth developed a toy that allowed little girls to imagine the future.
Barbie has had a lot of success as well as controversy over the years. In the 90’s, Barbie-related merchandise sales reached $1 billion annually and Mattel estimates three Barbie dolls are sold every second. Some women believe that Barbie’s various careers broke down gender barriers and served as inspiration to girls showing them they could be whatever they want. Others thought that her clothing and “Dream Houses” would encourage girls to be materialistic. In 1992, a women’s group criticized a talking Barbie doll for the phrase “math class is tough.” Barbie’s physical appearance has perhaps been the most controversial, with some claiming she set unrealistic expectations for girls. In 2016, Mattel released a new range of Barbie dolls that included three new body shapes and a variety of skin tones. Barbie has been working full time for 3 decades and she has had a number of fascinating careers from teacher to astronaut. As she nears retirement, let’s take a look at her retirement plan.
Barbie nears retirement
Barbie knew to begin investing early. She established her 401k and put away a little bit each month. She eventually increased her contribution to the maximum of $18,000 a year. She has accumulated $420,000 (her 401k took a big hit in the 2008 financial meltdown).
401k accumulation = $420,000
Social Security = $2,613 per month
Current Salary = $95,000
Barbie used the T.Rowe Price Retirement Calculator to see if she was on track.
Here are her results:
Barbie will need to make some adjustments to meet her goals
- To replace her income at 75% she will actually need $5,938 per month. If Barbie waits until age 70 years to collect her social security, her monthly benefit will increase to $3,337 ($724.00 more per month).
- She may consider working a couple more years or increasing her 401k contribution (after the age of 50, the maximum is $24,000)
- Barbie used the T.Rowe Price Retirement Calculator to see if she was on track. See if you are on track!
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