Contribute each year in order to achieve his retirement goal

Assignment Help Financial Management

Reference no: EM131590130

Someone you know needs advice on how much money to save for retirement. He wants to save enough to have an annual retirement income of $80,000 per year for 30 years. He has a 401K play and his company matches his contribution up to 10% of his income. Your friend makes $100,000 per year and expects to retire in 25 years. The expected annual return on his 401K over the next 25 years is 6%. Also, he expects to be able to earn a 6% rate of return on his unspent retirement money during his retirement years. What percentage of his income should he contribute each year in order to achieve his retirement goal?

Reference no: EM131590130

Questions Cloud

How should we view marijuana usage : How should we view marijuana usage. Does chronic use of this substance really create behavioral issues

Choose a fairy tale or folk tale from any of the book : Write a well-developed, intelligent paper that explains the tale to your reader, gives some historical background / cultural information .

Recommendation report that persuades readers to take action : Write a Recommendation Report that persuades readers to take action in response to a defined problem within a specific company or organization.

What factors have driven either the expansion or contraction : What factors have driven either the expansion or contraction of federal power/intervention in various aspects of American life across different eras?

Contribute each year in order to achieve his retirement goal : how much money to save for retirement. What percentage of his income should he contribute each year in order to achieve his retirement goal?

Prepare argument convincing him to hold off on his decision : Prepare an argument convincing him to hold off on his decision and see the results of your analysis first

Discuss topic-the court as representing public opinion : From the first and second e-Activities, describe key strategies that a judge would utilize in order to reconcile the discrepancy in perception of the George.

Describe a personality trait that runs in your family : What different interpretations could exist for these characteristics. How might genetics and the environment interact to produce these traits

What is the benefit-cost ratio for the project : What is the benefit-cost ratio for the project?

User Account

All Pages