Question
Elin wants to retire in 20 years when she turns 60. Elin wants to have enough money to replace 115% of her current income less
Elin wants to retire in 20 years when she turns 60. Elin wants to have enough money to replace 115% of her current income less what she expects to receive from Social Security. She expects to receive $20,000 per year from Social Security in today's dollars. Elin is conservative and wants to assume a 6% annual investment rate of return and assumes that inflation will be 3% per year. Based on her family history, Elin expects that she will live to be 95 years old. If Elin currently earns $100,000 per year and expects her raises to equal the inflation rate, approximately how much does she need at retirement to fulfill her retirement goals?
$3,843,038. | ||
$3,930,814. | ||
$3,997,256. | ||
$4,045,303. |
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