Question: You are single, age 50, without a retirement plan at work, and your income (all from wages) is $55,000/year. You now have a 25% income

You are single, age 50, without a retirement plan at work, and your income (all from wages) is $55,000/year. You now have a 25% income tax rate and expect your tax rate in retirement will be 15%. If you invest $2,000 today from your checking account into a Traditional IRA, and spend the tax savings on a vacation, how much in total can you spend in retirement in 20 years? Assume a 6% before-tax return.

$5,201

$5,452

$6,414

$4,811

$5,978

$5,773

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