2. Calculate how much Derek needs to save regularly to meet his retirement goal.

Client Information: Derek Porter is 38 years old and single. He wants to retire at age 62 with an 80% wage replacement ratio. Derek currently earns $150,000 as an employee and has managed to save $50,000 towards his retirement goal. He is currently saving $7,000 per year in his 40l(k) plan. His employer's plan calls for a 50% match for contributions up to an employee elective deferral of 6%. Client Goals: Dereks primary goal, for this example, is to retire at age 62 with an 80% wage replacement, including Social Security, projected to be $32,000 in today's dollars at normal retirement age of 67. He wants to plan for a life expectancy to age 90.

External Information: General inflation is expected to average 3.0% annually for the foreseeable future. Dereks expected investment portfolio rate of return is 8.0%. Dereks marginal income tax rate is 25%.