How much does need at retirement to fulfill retirement goals

Reference no: EM131969622

Question: Elin wants to retire in 20 years when she turns 60. Elin wants to have enough money to replace 120% of her current income less what she expects to receive from Social Security. She expects to receive $20,000 per year from Social Security in today's dollars. Elin is conservative and wants to assume a 6% annual investment rate of return and assumes that inflation will be 3% per year. Based on her family history, Elin expects that she will live to be 95 years old. If Elin currently earns $100,000 per year and expects her raises to equal the inflation rate, approximately how much does she need at retirement to fulfill her retirement goals?

Stephanie wanted to save for her daughter's education. Tuition costs $10,000 per year in today's dollars. Her daughter was born today and will go to school starting at age 18. She will go to school for 4 years. Stephanie can earn 12% on her investments and tuition inflation is 6%. How much must Stephanie save at the beginning of each year if she wants to make her last savings payment at the beginning of her daughter's first year of college?

Reference no: EM131969622

Questions Cloud

How much ellen can withdraw each months from the account : Ellen is 35 years old and she has decided it is time to plan seriously for her retirement. At the end of each year until she is 65, she will salce $10000.

Discuss models for successful team performance : As a leader, you have been tasked with building a team whose purpose is to recommend a new performance evaluation system.

What approache could yielded additional valuable information : Review and reflect on the knowledge you have gained from this course. What approaches could have yielded additional valuable information?

Computing the average accounting rate of return : Egypt Co. has a machine that costs $126,000. The machine will be depreciated on a straight-line basis to a zero book value over their eight-year life.

How much does need at retirement to fulfill retirement goals : Elin wants to retire in 20 years when she turns 60. Elin wants to have enough money to replace 120% of her current income less what she expects to receive from.

Discuss the remote connectivity needs for the system : Discuss the remote connectivity needs for the system. Identify the applications and hardware necessary to address the remote connectivity requirements.

What does efficient market hypothesis say about securities : What does the efficient market hypothesis (EMH) say about securities prices, their reaction to new information, and investor opportunities to profit?

Explain the difference between science and technology : Explain the difference between science and technology. What biotechnology did you select? Explain what it is and how it is used.

Calculate the operating cash flow for given year : El Dorado Storage has the following projections for Year 1 of a capital budgeting project. Sales $248,150 Variable costs $121,665 Fixed costs adn selling.

User Account

All Pages