Scenario: Based on what you learned in this course, how would you invest for your future if you were 30 years old, planning to retire at age 70 and planning to live 20 years beyond retirement?

Consider the following factors: include basic rent (1st ten yrs.) and mortgage thereafter; and basic expenses but not including healthcare (assumes employer ins. until retirement) and miscellaneous.

You will have total income avg. of $50,000 for the first 10 yrs., with $10,000 for savings/investment after expenses; an average of $60,000 yearly income for the second 10 years with an average of $5,000 per year for savings and investment after paying your mortgage payments of $1440 per month starting at age 47 (mortgage is for 30 years). Your average yearly income will be $73,500 for the 20 years following that, leaving $8,000 per year for savings and investment. You forecast that your social security will bring in $28,000 per year and you want to own your home outright by the time you retire. The car payments will be completed by age 70. You figure you need around $40,000 minimum per year to live on.

• How would you invest and save over the years from age 30 through retirement so that you are comfortable? Explain.