About the retirement income goal

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Reference no: EM131085610

Janine is 45 and has a good job at a biotechnology company. She currently has $4,500 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of 6 percent, and she plans to leave it untouched until she retires at age 65. Janine estimates that she will need $886,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $27,000 a year (she expects that Social Security will pay her an additional $17,000 a year). How much money will Janine have to accumulate in her company’s 401(k) plan over the next 20 years in order to reach her retirement income goal? Use Exhibit 1-A.

Reference no: EM131085610

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