Assume you are 30 years old, and you have a job offer of:

Salary: $110000

Retirement Benefits: 401(K) plan with a 3% match

Question:

1. If you save 15% of your salary each year, how much money would you have when you turn 65, assuming you earn a 7% annual return on your investments (hint: be sure to include the employer match in addition to your personal savings)?

2. During retirement, your return drops to 5% annually as you decide to invest more conservatively to protect your principal. How much could you spend each year and not have your money run out before age 95?