What type of nominal rate-of-return-retirement savings

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Suppose that you get married after graduating with your undergraduate degree. During your working years, your household makes an average annual income of $100,000. This includes health insurance but not retirement, so all your retirement savings must come from your savings and investment during your working years. Answer the following questions.

How many years does your household plan to work? This is a number you must specify.

What type of nominal rate-of-return do you expect to earn on your retirement savings?

What inflation rate during your working years are you assuming?

What real rate-of-return does this nominal rate and expected inflation rate provide?

How many years do you expect to live between the day you retire and the day you die?

What is your household’s estimated annual social security income?

 

What percent of your income do you need to save for retirement during your working years to ensure your annual retirement income roughly equals your income during your working years?

Reference no: EM131048796

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