What annual income would jasmine need for retirement

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Reference no: EM132032558

Jasmine Amberlin, age 40, single, and from Victorville, California, is trying to estimate the amount she needs to save annually to meet her retirement needs. Jasmne currently earns $30,000 per year. She expects to need 80 percent of her current salary to live on at retirement. Jasmine anticipates that she will receive $800 per month in Social Security benefits. Assume Jessica will be retired for 25 years and that she earns 3% beyond inflation and taxes in her retirement investments.

(a) What annual income would Jasmine need for retirement?

(b) What would her annual expected Social Security benefit be?

(d) How much annual retirement income will she need from her retirement funds?

(e) How much will Jasmne need to save by retirement in today’s dollars if she plans to retire at age 65 and live to age 90?

(f) Jasmine currently has $5000 in a traditional IRA. Assuming a growth rate of 8 percent, what will be the value of her IRA when she retires?

(g) How much additional money will she still need to save for retirement?

(h) What is the amount she needs to save each year to reach this goal?

Reference no: EM132032558

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