Gwen has an IRA worth $52,000, and Brad's 401(k) is worth $225,000. Brad has an inflation protected
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Gwen has an IRA worth $52,000, and Brad's 401(k) is worth $225,000. Brad has an inflation protected pension from his old job (where he began working after he was married to Gwen). It will pay him a monthly benefit of $3,000 per month starting at age 65. Brad has a life expectancy of 26.29 additional years. The pension administrator indicated that the plan uses a discount rate of 3.53% and an inflation rate of 2%.
3. Based on the case facts, how much money is required to be in the plan at his age 65 in order to provide Brad with the promised benefit $3,000 per month?
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