Objective: What percent of your salary do you need to invest in your 401(k) to yield enough money to retire at age 67 (full Social Security retirement age) with 80% of your salary when you retire. Calculate percent to the nearest 0.1 of a percent. Assume: - You start working at age 25 and your starting salary is $76,000 - Your salary will grow with the average annual inflation rate since 1913 - Your employer will match 100% of your 401(k) contributions up to 6% of your salary - Assume all your contributions and company match are made at the end of each year - You invest your 401(k) in 80% stocks and 20% bonds up to retirement - After retirement you become more conservative 50% stock and 50% bonds - You will require enough money so that your retirement income will cover inflation - You will retire at age 67 and live to age 87 - You will start taking the money from your 401(k) at age 68 (end of the year) You will be in the 25% tax bracket when you withdraw funds from the 401k - Assume 25% tax bracket for all funds withdrawn each year Objective: What percent of your salary do you need to invest in your 401(k) to yield enough money to retire at age 67 (full Social Security retirement age) with 80% of your salary when you retire. Calculate percent to the nearest 0.1 of a percent. Assume: - You start working at age 25 and your starting salary is $76,000 - Your salary will grow with the average annual inflation rate since 1913 - Your employer will match 100% of your 401(k) contributions up to 6% of your salary - Assume all your contributions and company match are made at the end of each year - You invest your 401(k) in 80% stocks and 20% bonds up to retirement - After retirement you become more conservative 50% stock and 50% bonds - You will require enough money so that your retirement income will cover inflation - You will retire at age 67 and live to age 87 - You will start taking the money from your 401(k) at age 68 (end of the year) You will be in the 25% tax bracket when you withdraw funds from the 401k - Assume 25% tax bracket for all funds withdrawn each year