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You are then talking to the Walkers, a married couple who are both 52 years old. They want to retire early at age 62 with
You are then talking to the Walkers, a married couple who are both 52 years old. They want to retire early at age 62 with an annual combined income of $100,000 in retirement and are asking you to review their financial position and let them know if they are on the right path to achieving this goal. You review their financial position and see where they will receive $25,000 per year combined for the couple from Social Security by retiring early. They were also in a defined benefit pension for 15 years which paid 1% per year and is based on their combined salary(s) of $100,000. In addition, they have been putting 6% of their salary, average of $100,000 per year combined into a tax deferred 401K which their employer has contributed a 3% salary match. They have been contributing to this since they were both 27 and have an average compounded growth rate of 7% in this account. 4. Looking at their annual contributions with the company match, the 7% annual return and the number of years they have contributed and will contribute, what will be the future value of their 401K balance at age 62? What is their 401K balance today? Show the work to support these answers
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