Question 2 If you were 65 yrs old and starting retirement today and you had $1,000,000 in savings, and you were going to be in retirement for 30 years, how much would you have per month to live on? Assume you can invest at 6% rate of return per year. Present Value of an Annuity Regular amount withdrawn X Present Value Factor for 30 years and 6% = $1,000,000 Amount withdrawn per year = $1,000,000 / 13.765 - $72,648.02 72,648.02 / 12 months per year $6054 per month Subtract Federal Income Tax of 20% - $4,843.20 after taxes to buy your retirement lifestyle, Create a budget as if you were retired to determine if you could live comfortably on $4,843.02 per month Question 4 How much would YOU have to save per year to reach the retirement goal you calculated in Q3? Assume a 6% rate of investment return, and that you are age 25 when you start your career and that you will retire at age 65. What percent of your annual income will you have to save? Go to the Bureau of Labor Statistics website to determine how much you might realistically earn in your chosen career path. So what do you want to do for a living? Go to BLS.GOV click on Subjects then Wages by Area and Occupation, then Wage Data by State. Click on Ohio then scroll down to your career field and click on it to uncover specific careers with each occupation group