Troy and Kristy Reynolds (both currently age 56) have determined that they will require retirement income equal to $93,000 in today's dollars, based on their current income. They plan to retire in eight years and wish to assume an after-tax return on their investments, prior to retirement, of eight percen percent. Troy's parents are both in their late eighties, and Kristy's parents are in their seventies. Troy and They plan to readjust their assets after retirement and believe that their net return will drop to s Kristy assume that retirement will last for 30 years, and that inflation will average two percent
The Reynolds would like to know how much they need to save each year to fund retirement F want to retire at age 64, they will live until age 95, and they expect to inherit $1,000,000 at age 64 purposes of this calculation, assume they have accumulated retirement savings of $162.491, they (just when they are retiring). Social Security benefits are the same as described above.