A client of yours who is 28 years old, comes to you wanting to map out a plan for his future. How much would you recommend the client save each month from now until he retires to reach his goals?

• He makes $75,000/year and salary is expected to grow at 5% per year.
• He thinks he will earn 9.5% on investments during his working years and 5.5% while in retirement.
• Retires at age 65.
• Expected to live to age 93.
• He wants to make monthly withdrawals from his retirement account equivalent to what his salary is during his last year of work. This number should be adjusted for inflation each year in retirement, and his withdrawals are at the beginning of each month.
• Wants to leave his children $200,000, in todays dollars, at the end of his life.
• Inflation rate during his entire life will most likely be 2.65% per year.
• He wants to buy a vacation home the year he retires. This is expected to cost $300,000 in todays dollars