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6. Mike, age 48, has $60,000 saved for retirement. He is currently saving 10% of his annual income of $50,000 on a monthly basis. His
6. Mike, age 48, has $60,000 saved for retirement. He is currently saving 10% of his annual income of $50,000 on a monthly basis. His employer matches his savings contributions with $1,500 annually, paid on a monthly basis. Mike projects that inflation will be 3.5% and he can earn 9.5% before and during retirement. Mike needs a wage replacement ratio of 75% of his preretirement income. He plans to retire at age 62 with Social Security benefits of $10,000 in today's dollars. His life expectancy is age 90. What will be Mike's retirement income need in the first year of retirement, taking into consideration his anticipated Social Security income
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