What do we know?
What can we assume?
Bob: 46 years old, works at a business school as a professor
: to work until he is 60 or 65 years old
Wife will not earn income.
Bob will be the only individual to earn an income.
14-19 years before retirement
Nine Month Salary, currently at $95,000
Salary has increased 4-15%, over the 12 years working at
the college (severe compression on faculty salary increases)
Receive two-ninths of his regular salary for his research
support (is not intended to cover the costs of his research)
Earns $10,000 to $20,000 per year from consulting,
executive education and other activities
Salary will not increase
of current salary is $21,111
Earn on average $15,000 in additional income
from consulting, executive education and other
School pays an additional 10% only on main income
Bob contributes $7,500 per year (before taxes)
Maximum amount he can contribute is currently $10,000
Retirement Savings are invested with TIAA-CREF, current
amount at $137,000
10% contribution of yearly main salary from his
Social Security Trust Fund
Bob contributed to Social Security as required by law, but is
uncertain with the current problems with the trust funds if
he will receive any upon retirement.