You just turned 25 and got your first job as a financial advisor after graduation. Your starting salary is $60,000. Assume you will receive salary at the end of each year (i.e., first payment when you turn 26). You expect your salary to increase, on average, by 3% per year for 10 years, then 5% per year for the remainder of your career 25 and got your first job as a financial advisor after graduation. Your starting salary is $60,000. Assume you will receive salary at the end of each year (i.e., first payment when you turn 26). You expect your salary to increase, on average, by 3% per year for 10 years, then 5% per year for the remainder of your career. You expect to retire when you turn 67 and live until 85. You plan to spend $100,000 per year in your retirement in today's dollars. Assume nominal interest rate is 5%. Inflation is estimated to be 2% per year, on average. How much do you have to save per year to meet your retirement goals

Answer rating: 100% (QA)

Answer Savings Required to Meet Retirement Goals Heres how to calculate the amount you need to save annually to reach your retirement goals Part 1 Fut... View the full answer