QUESTION 21 Bob wants to retire in 15 years when he turns 62, Bob wants to have enough money to replace 75% of his current income less what he expects to receive from Social Security at the beginning of each year. He expects to receive $25,714 per year from Social Security in today's dollars at full retirement age of 67. However, he will take Social Security early at age 62, when he retires. Bob is aggressive and wants to assume an 8% annual investment rate of return and that inflation will be 3% per year. Based on his family history, Bob expects that he will live 30 years in retirement (age 92). If Bob currently earns $80,000 per year and he expects his raises to equal the inflation rate, how much does he need at retirement to fulfill his retirement goals? $874,794 $1,022,807. $1,072,458. $1,583,152. QUESTION 22 Which of the following statements is true? Social Security payments are not adjusted for inflation. O A worker's average indexed monthly earnings (AIME) will be their Social Security benefit at retirement. O If an individual who will reach full retirement age for Social Security purposes at the age of 67 begins taking benefits at age 62, they will take a 30 percent reduction in benefits. O A 68 year old worker will have their Social Security benefits reduced based on earnings from their current employment. QUESTION 23 An individual has determined utilizing the annuity method of capital needs analysis that he needs $1,045,656 at the beginning of his retirement to meet his retirement life expectancy goals. If this individual would like to be more conservative in his retirement planning forecast and maintain this capital balance throughout his retirement life expectancy of 32 years, given an expected earnings rate of 6% and an inflation rate of 3% during the period, how much more would he need to have at the beginning of his retirement? $162,032. $406,067 $417,246. $674,023