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Sophia is 4 5 years old and aims to retire in 2 5 years. With a family history of living into their early 8 0

Sophia is 45 years old and aims to retire in 25 years. With a family history of living into their early 80s, she estimates a retirement age of 80. Sophias current salary is $150,000, and she anticipates needing 70% of this amount annually in retirement. She expects a return of 5% on her investments and an inflation rate of 4%. Sophia currently has $500,000 saved for her retirement. Her Social Security benefit at full retirement age of 67 is estimated to be $20,000 per year in todays dollars. Using the annuity method, how much does Sophia need to save each year at year end to meet her retirement needs?

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