Michelle is 68 years old and just decided to retire. She has no other source of income but for her Social Security. Over the past 25 years of her working life, she has been averaging an annual income of $50,000. Recently, the inflation rate is approximately 3% and is expected to stay at that level over the next decade. Given this scenario, please respond to the following questions:

• What is the expected monthly income for Michelle from Social Security?
• What is Michelles expected net (after-tax) monthly income?
• Given the assumed inflation rate, what will Michelles real buying power be 10 years after her retirement, in relation to what it is on the day of her retirement and her first receipt of a Social Security payment?
• How could she better manage her Social Security income and real buying power?