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1 ) Your current annual living expenditures are $ 7 7 , 6 2 4 . You estimate that at retirement in 3 0 years,
Your current annual living expenditures are $ You estimate that at retirement in years, you will need of that, in today's dollars. You anticipate that your tax rate in retirement will be
You estimate that you will receive annual social security benefits of $ per year, and plan to keep your rental property that produces annual net income of $ both in today's dollars.
What is the inflationadjusted shortfall in your retirement income, if you expect an average annual inflation?
After some calculations, you realize that your inflationadjusted retirement income shortfall is $ per year.
You anticipate that once you retire, you will be retired for years. How much at a minimum should you have saved at the time of your retirement, if you estimate that your equitydebt retirement portfolio will have a real net of inflation return of on average?
For simplicity, assume that once you retire you will be withdrawing the necessary amount from your portfolio at the end of each year. Based on the framework in the previous two problems, you have found that you need to have a total of $ in savings at the time you retire, in years. You currently only have $ saved up in your retirement accounts.
If you anticipate that your investment portfolio will return an average of per year, how much extra must you save every year to reach your goal? Assume that you'll be saving the extra amount by the end of each year.
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