UDAY GUPTA

Introductory Data

Uday Gupta is $40$ years old and has never married. He wants to retire at age $62$ with an $80\%$ wage replacement ratio. Uday currently earns $$100,000$ as an employee and has managed to save $$100,000$ towards his retirement goal $($including investment assets and cash equivalents$).$ He is currently saving $$5,000$ per year in his $401(k)$ plan. His employer's plan calls for a $50\%$ match for contributions up to an employee elective deferral of $6\%.$

Financial Goal

Uday's primary goal, for this example, is to retire at age $62$ with an $80\%$ wage replacement, including Social Security, projected to be $$30,000$ in today's dollars at normal retirement age of $67.$ He wants to plan for a life expectancy to age $95.$

Economic and Investment Information

General inflation is expected to average $3\mathrm{.}0\%$ annually for the foreseeable future.

Uday's expected investment portfolio rate of return is $8\mathrm{.}5\%.$

Uday's marginal income tax rate is $24\%.$

Use present value analysus of neefs versus resources at age $67$