Question
Junior is a 35-year-old Paramedic in Denton County. He has come to you for advice about how much to save for retirement. He makes $47,000
Junior is a 35-year-old Paramedic in Denton County. He has come to you for advice about how much to save for retirement. He makes $47,000 per year salary. Your firm uses an end age of 95 and a top-down ratio of 76%. Junior expects to get $30,000/year from his pension during retirement(will not adjust for inflation), but he wants to save more for retirement in his 457 plan. Junior has a moderate aggressive investment style. He anticipates an 8% return on his 457 portfolio before he retires. Once he retires, he wants to invest more conservatively and he expects his to have a 6% return during retirement. He would like to leave nothing to his heirs. Your firm has an expected Inflation Rate of 2% annually. He wants to know how much he needs to save in his 457k to have a successful retirement if he retires at age 67. Calculate how much Junior needs to save each year for his goal. (Use a positive number and Round to the nearest dollar)
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