WHAT DO YOU RECOMMEND? Chrisanna Prez Rodrguez and her husband, Fernando, have worked since their early twenties. Chrisanna, age 48, worked for a previous employer for eight years. When she left that job, Chrisanna left her retirement money in that employer's 401(k) retirement plan. The funds are now worth $120,000 and they earn about 4 percent annually. She now works as food services manager for a convention center, earning $110,000 a year. Chrisanna contributes $366 each month (4 percent of her salary) to her employ- er's 401(k) retirement plan. Her employer's policy is to pro- vide a 100 percent match up to 6 percent of Chrisanna's salary contributions, and allow her to contribute a total of up to 8 percent of her salary on her own. Chrisanna's 401(k) account balance at her new employer is $21,000. They have no other retirement savings. Fernando, age 48, is a computer programmer working independently as a contractor for various companies, and he earns about! $90,000 annually. Chrisanna is hoping that she and Fernando can retire when they both are age 65. What do you recommend to Chrisanna and Fernando on the subject of retirement and estate planning regarding: 1. How much in Social Security benefits can each expect to receive? 2. How much do they each need to save for retirement if they want to spend at a lifestyle of 80 percent of their current living expenses? 3. In which types of retirement plans might Fernando invest for retirement? 4. What withdrawal rate might they use to avoid running out of money during retirement? 5. What two actions might they take to go about transferring their assets by contract to avoid probate? WHAT DO YOU RECOMMEND? Chrisanna Prez Rodrguez and her husband, Fernando, have worked since their early twenties. Chrisanna, age 48, worked for a previous employer for eight years. When she left that job, Chrisanna left her retirement money in that employer's 401(k) retirement plan. The funds are now worth $120,000 and they earn about 4 percent annually. She now works as food services manager for a convention center, earning $110,000 a year. Chrisanna contributes $366 each month (4 percent of her salary) to her employ- er's 401(k) retirement plan. Her employer's policy is to pro- vide a 100 percent match up to 6 percent of Chrisanna's salary contributions, and allow her to contribute a total of up to 8 percent of her salary on her own. Chrisanna's 401(k) account balance at her new employer is $21,000. They have no other retirement savings. Fernando, age 48, is a computer programmer working independently as a contractor for various companies, and he earns about! $90,000 annually. Chrisanna is hoping that she and Fernando can retire when they both are age 65. What do you recommend to Chrisanna and Fernando on the subject of retirement and estate planning regarding: 1. How much in Social Security benefits can each expect to receive? 2. How much do they each need to save for retirement if they want to spend at a lifestyle of 80 percent of their current living expenses? 3. In which types of retirement plans might Fernando invest for retirement? 4. What withdrawal rate might they use to avoid running out of money during retirement? 5. What two actions might they take to go about transferring their assets by contract to avoid probate
