Question
8. Cameron is 40 years old and has $10,000 saved in an IRA for retirement. Cameron feels that she needs $50,000 per year in todays
8. Cameron is 40 years old and has $10,000 saved in an IRA for retirement. Cameron feels that she needs $50,000 per year in todays dollars for each year of retirement. Retirement is to begin at age 62 and there is no expectation of receiving any Social Security. You must advise your client on how much additional to save each year until retirement to reach the goal assuming money before retirement is invested at 8% and at 8% after retirement. Also assume a 2% inflation rate. (life expectancy - age 95).
2020 Exemption $11,580,000
Tax Rate 40%
Uniform Life Expectancy Table
Age Factor
70 27.4
71 26.5
72 25.6
Single Life Expectancy
Age Factor
52 32.3
53 31.4
54 30.5
55 29.6
56 28.7
57 27.5
58 27
59 26.1
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