How much more do you have to save monthly in a separate

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TIME VALUE OF MONEY. Please show all work.

QUESTION: You are 45 years old and feel a need to get your financial situation in order. You want to retire AT 65 and be able to draw $40,000 per year for 30 or more years on top of your social security benefits. You have a total of $81,692 in your 401K right now, and it has been earning a modest 4% annually. You don't think it will go below that return, so you are comfortable using that percentage going forward through retirement. Your contributions, including your employer's matching, amount to $12,500 per year and will continue until you retire.

How much more do you have to save monthly in a separate account currently earning 3% annually to reach your retirement goals?

Reference no: EM132396626

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