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culation of Annual Savings Needed to Meet a Retirement Goal cd Denny, age 42, single, and from Lansing, Michigan, is trying to estimate the amount she needs to save annually eds. Nicci currently earns $95,000 per year. She expects to need 90 percent of her current salary to live on at retir ceiving about $2,640 per month in Social Security benefits at age 67. Using the Run Numbers worksheet, answer t und your answers to the nearest dollar. What annual income would Nicci need for retirement? $ What would her annual expected Social Security benefit be? Nicci expects to receive $1,250 per month from her defined-benefit pension at work. What is her annual benefit?

culation of Annual Savings Needed to Meet a Retirement Goal cd Denny, age 42, single, and from Lansing, Michigan, is trying to estimate the amount she needs to save annually eds. Nicci currently earns $95,000 per year. She expects to need 90 percent of her current salary to live on at retir ceiving about $2,640 per month in Social Security benefits at age 67. Using the Run Numbers worksheet, answer t und your answers to the nearest dollar. What annual income would Nicci need for retirement? $ What would her annual expected Social Security benefit be? Nicci expects to receive $1,250 per month from her defined-benefit pension at work. What is her annual benefit?

Personal Finance
Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter17: Retirement And Estate Planning
Section: Chapter Questions
Problem 4FPC
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g. How much additional money will she still need to save for retirement? h. What is the amount she needs to save each year to reach this goal? Use Appendix A-3 to solve for the answer, Round Future Value of a Series of Equal Amounts in intermediate calculations to four decimal places. Investment returns are assumed to be 3% after inflation. $ Check My Work ( remaining)
Transcribed Image Text:g. How much additional money will she still need to save for retirement? h. What is the amount she needs to save each year to reach this goal? Use Appendix A-3 to solve for the answer, Round Future Value of a Series of Equal Amounts in intermediate calculations to four decimal places. Investment returns are assumed to be 3% after inflation. $ Check My Work ( remaining)
Calculation of Annual Savings Needed to Meet a Retirement Goal Nicci Denny, age 42, single, and from Lansing, Michigan, is trying to estimate the amount she needs to save annually to meet her retirement needs. Nicci currently earns $95,000 per year. She expects to need 90 percent of her current salary to live on at retirement. Nicci anticipates receiving about $2,640 per month in Social Security benefits at age 67. Using the Run Numbers worksheet, answer the following questions. Round your answers to the nearest dollar. a. What annual income would Nicci need for retirement? $ b. What would her annual expected Social Security benefit be? $ c. Nicci expects to receive $1,250 per month from her defined-benefit pension at work. What is her annual benefit? $ d. How much annual retirement income will she need from her retirement funds? $ e. How much will Nicci need to save by retirement in today's dollars if she plans to retire at age 67 and live to age 92, like her mother? Use Appendix A-4 to solve for the answer. Round Present Value of a Series of Equal Amounts in intermediate calculations to four decimal places. Investment returns are assumed to be 3% after inflation. f. Nicci currently has $13,000 in a Roth IRA. Assuming a growth rate of 8 percent, what will be the value of her Roth IRA when she retires? (Hint: Don't take out income taxes.) Use Appendix A-1 to solve for the answer, Round Future Value of a Single Amount in intermediate calculations to four decimal places. www
Transcribed Image Text:Calculation of Annual Savings Needed to Meet a Retirement Goal Nicci Denny, age 42, single, and from Lansing, Michigan, is trying to estimate the amount she needs to save annually to meet her retirement needs. Nicci currently earns $95,000 per year. She expects to need 90 percent of her current salary to live on at retirement. Nicci anticipates receiving about $2,640 per month in Social Security benefits at age 67. Using the Run Numbers worksheet, answer the following questions. Round your answers to the nearest dollar. a. What annual income would Nicci need for retirement? $ b. What would her annual expected Social Security benefit be? $ c. Nicci expects to receive $1,250 per month from her defined-benefit pension at work. What is her annual benefit? $ d. How much annual retirement income will she need from her retirement funds? $ e. How much will Nicci need to save by retirement in today's dollars if she plans to retire at age 67 and live to age 92, like her mother? Use Appendix A-4 to solve for the answer. Round Present Value of a Series of Equal Amounts in intermediate calculations to four decimal places. Investment returns are assumed to be 3% after inflation. f. Nicci currently has $13,000 in a Roth IRA. Assuming a growth rate of 8 percent, what will be the value of her Roth IRA when she retires? (Hint: Don't take out income taxes.) Use Appendix A-1 to solve for the answer, Round Future Value of a Single Amount in intermediate calculations to four decimal places. www
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