Question: 6. A client needs assistance with retirement planning. Here are the facts: The client, Dave, is 21 years old. He wants to retire at 65.

6. A client needs assistance with retirement planning. Here are the facts:

The client, Dave, is 21 years old. He wants to retire at 65.

Dave has disposable income of $2,000 per month.

The IRA Dave has chosen has an average annual return of 8%.

  1. If Dave contributes half of his disposable income to the account, what will it be worth at 65?
  2. How much would he need to contribute to have $5,000,000 at 65?

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