Jordan wants to retire in 20 years when he turns 65. Jordan wants to have enough...

 

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Jordan wants to retire in 20 years when he turns 65. Jordan wants to have enough money to replace 80% of his current income less what he expects to receive from Social Security at the beginning of each year. He expects to receive $10,000 per year from Social Security in today's dollars. Jordan is conservative and wants to assume a 5% annual investment rate of return and assumes that inflation will be 3% per year. Based on his family history, Jordan expects that he will live to be 90 years old. If Jordan currently earns $100,000 per year and he expects his raises to equal the inflation rate, approximately how much does he need at retirement to fulfill his retirement goals? Jordan wants to retire in 20 years when he turns 65. Jordan wants to have enough money to replace 80% of his current income less what he expects to receive from Social Security at the beginning of each year. He expects to receive $10,000 per year from Social Security in today's dollars. Jordan is conservative and wants to assume a 5% annual investment rate of return and assumes that inflation will be 3% per year. Based on his family history, Jordan expects that he will live to be 90 years old. If Jordan currently earns $100,000 per year and he expects his raises to equal the inflation rate, approximately how much does he need at retirement to fulfill his retirement goals?

Answer rating: 100% (QA)

Total income replacement needed 80 X 100000year 80000year Total income replacement needed ove... View the full answer