David, age 45, wants to retire at age 60. He currently makes $60,000 per year and does not expect any
David, age 45, wants to retire at age 60. He currently makes $60,000 per year and does not expect any pay increases but expects to receive a cost-of -living increase equal to inflation. He has an objective to replace 80% of his pre-retirement income. He wants the retirement income to be inflation adjusted. His portfolio is currently valued at $150,000 and earning 10% per year. David expects inflation to average 3% and expects to live until age 90. David wants to ignore Social Security.
How much capital will David need at age 60? (What is his Number)
How much will David have at age 60?
How much would David need to increase his savings on a MONTHLY basis to meet his goal of retiring at age 60?