Use Worksheet 14.1 to help Paul and Crystal Meyer, whod like to retire in about 20 years. Both have promising careers, and both make good money. As a result, theyre willing to put aside whatever is necessary to achieve a comfortable lifestyle in retirement. Their current level of household expenditures (excluding savings) is around $75,000 a year, and they expect to spend even more in retirement; they think theyll need about 125 percent of that amount. (Note: 125 percent equals a multiplier factor of 1.25.) They estimate that their Social Security benefits will amount to $30,000 a year in todays dollars and that theyll receive another $35,000 annually from their company pension plans. They feel that future inflation will amount to about 3 percent a year, and they think theyll be able to earn about 6 percent on their investments before retirement and about 4 percent afterward. Use Worksheet 14.1 to find out how big Paul and Crystals investment nest egg will have to be and how much theyll have to save annually to accumulate the needed amount within the next 20 years.