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1. Sara is 30 years old and makes $40,000 per year. She has $10,000 in a traditional IRA, which is growing at 5%. She plans
1. Sara is 30 years old and makes $40,000 per year. She has $10,000 in a traditional IRA, which is growing at 5%. She plans not to touch it until she retires at age 70. Sara believes she will make $3,000 per month from Social Security. (LO 16-1) a. With cost of living and merit salary increases, she estimates that she will be making $180,000 annually prior to retiring. How much should she budget for living expenses on a monthly basis after retirement, assuming she will need 70% of her pre-retirement income? b. How much will her IRA be worth by age 70? c. The social security and IRA will cover part of the budget for the answer in part a. What is another resource Sara should be able to rely on? e. Blank # 1 Blank # 2 Blank # 3 AJ
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