Tyler, age 26, currently earns $100,000 per year working as an insurance broker and has no savings. He expects to earn, on average, 10.5 percent per year on his future investments and retire at age 67, possibly living to age 92. He determines his wage replacement ratio is 85 percent. He also expects that inflation will average 2.5 percent for his entire life expectancy. He has sent for and received his Social Security benefit statement, which indicated that his Social Security retirement benefit in todays dollars is $18,000 per year.

According to the basic annuity model, what is the amount of money Tyler needs at retirement at age 67?

According to the basic annuity model, how much must Tyler save on an annual basis to achieve the necessary retirement amount, assuming he has no current savings?

According to the capital preservation model, what is the amount of money Tyler needs at retirement at age 67?

According to the capital preservation model, how much must Tyler save on an annual basis to achieve the necessary retirement amount, assuming he has no current savings?

According to the purchasing power preservation model, what is the amount of money Tyler needs at retirement at age 67?

According to the purchasing power preservation model, how much must Tyler save on an annual basis to achieve the necessary retirement amount, assuming he has no current savings?