How much does she need at retirement to fulfill her goals

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Reference no: EM131902200

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?

Reference no: EM131902200

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