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Brian would like to retire in 10 years when he turns 62 . Based on his family history, Brian expects that he will live to
Brian would like to retire in 10 years when he turns 62 . Based on his family history, Brian expects that he will live to be 108 years old. He wants to have enough money to replace 60% of his current income. Brian currently earns $150,000 per year. He expects to receive $10,000 per year from Social Security in today's dollars. Brian wants to assume an 8% annual investment rate of return before and during retirement and that inflation will average 4% annually. How much will Brian need to save at the end of each year from now until retirement, assuming he has current assets of $1,000,000 (round the lump sum investment capital need to 2 decimal places)? a. $26,054 b. $32,788 c. $41,879 d. $55,515
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