How much does grady need to save per month

Reference no: EM133491140

Case: Grady? Zebrowski, age? 25, just graduated from? college, accepted his first job with a ?$53,000 ?salary, and is already looking forward to retirement in 40 years. He assumes a 2.4 percent inflation rate and plans to live in retirement for 20 years. He does not want to plan on any Social Security benefits. Assume Grady can earn a 9 percent rate of return on his investments prior to retirement and a 5 percent rate of return on his investments? post-retirement to answer the following questions using your financial calculator.

a. Grady wants to replace 90 percent of his current net income. What is his annual need in? today's dollars?

b. Using the table ?, Grady thinks he might have an average tax rate of 13 percent at retirement if he is married. Adjusting for? taxes, how much does Grady really need per? year, in? today's dollars?

c. Adjusting for? inflation, how much does Grady need per year in future dollars when he begins retirement in 40 ?years?

d. If he needs this amount for 20 ?years, how much does he need in total for? retirement?

e. How much does Grady need to save per month to reach his retirement goal assuming he does not receive any employer match on his retirement? savings?

a. ?Grady's annual need in? today's dollars is ?$ enter your response here. ?(Round to the nearest? dollar.)

Reference no: EM133491140

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