How much does rebecca need to save annually to achieve

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Rebecca calculated that she needs a total of $1,400,000 at retirement (beyond pensions and Social Security). Rebecca is 34 years old, investing aggressively and expecting to earn 7% in her retirement account. She plans to retire at age 62.

Problem1 : How much does Rebecca need to save annually to achieve her goal?

Problem2 : Once in retirement, Rebecca would like annual retirement income of $70,000. She would like the savings to last for 25 years during retirement. Assuming that she could earn a 4% after-tax and after-inflation rate of return on their investments, did she save enough?

Reference no: EM132867222

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