You expect Social Security will replace 20% of your income. Your average annual career income is...

  

Transcribed Image Text:

You expect Social Security will replace 20% of your income. Your average annual career income is $100,000. Since you plan to travel more frequently throughout your retirement years, you think you will need an 80% wage replacement rate in retirement. Even though a 4% withdrawal rate from your portfolio is a common guideline, you intend to withdraw 5% from your retirement savings annually. Approximately how much money will you need to have saved in today's dollars at retirement? O $800,000. O $1,500,000. O $1,200,000. O $600,000. You expect Social Security will replace 20% of your income. Your average annual career income is $100,000. Since you plan to travel more frequently throughout your retirement years, you think you will need an 80% wage replacement rate in retirement. Even though a 4% withdrawal rate from your portfolio is a common guideline, you intend to withdraw 5% from your retirement savings annually. Approximately how much money will you need to have saved in today's dollars at retirement? O $800,000. O $1,500,000. O $1,200,000. O $600,000.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Answer correct option is 1200000 ... View the full answer