Question
Anne-Marie and Yancy calculate their current living expenditures to be $65,000 a year. During retirement they plan to take one cruise a year that will
Anne-Marie and Yancy calculate their current living expenditures to be $65,000 a year. During retirement they plan to take one cruise a year that will cost $5,000 intoday's dollars.Anne-Marie estimated that their average tax rate in retirement would be 18 percent. Yancy estimated their Social Security income to be about $21,283 and their retirement benefits are approximately $32,371
a. The pre-taxamount, intoday's dollars, thatAnne-Marie and Yancy will need in retirement assuming 70 percent replacement and an additional $5,000 for the cruise is $50, 500
Question:
Assuming the 18 percent income tax estimate duringretirement, what is their tax-adjusted need from parta?
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