Question
Your clients, Jim and Barbara, are both age 48. They have a household income of $127,500. She has $290,000 of investment/retirement assets saved, not including
Your clients, Jim and Barbara, are both age 48. They have a household income of $127,500. She has $290,000 of investment/retirement assets saved, not including personal assets. He has $385,000 of investment/retirement assets saved. Collectively, they save 12% of their current household annual income for retirement. Assume they can expect to earn 7.2% with an inflation rate of 2.9% from now until their death. Since they are the same age, they both want to retire at age 62, and want to plan for a 75% WRR
.How much will their collective retirement assets be worth at their retirement?
a. $2,136,567
b. $2,215,398
c. $1,117,535
d. $1,987,358
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