Jane Doe

Age: 42

Divorced

Job: Engineer

Annual Income $ 80,000/year

Estimated average growth in salary per year of 4% until age 55 and 2.5% growth until retirement

Financial Assets:

Currently has $65,000 in her 401k

She saves 3% of her annual income in her 401k

Her employer matches 401k contributions up to 3% of annual income

Needs $50,000 a year (in today's dollars) during retirement.

Given her family history and good health, she expects to at least live to the age of 85.

She expects an average inflation rate of 2% over your lifetime.

Assume the investments in her 401K grows by 7.5% per year.

Questions

How much will Jane have in her 401K at age 60?

If she retires at age 65 (23 years),

what was her final salary?

how much yearly income will she need?

At age 75, how much is left in her 401K