View the step-by-step solution to:

# Egbert Martin wants to retire in 15 years when he turns 65.

Egbert Martin wants to retire in 15 years when he turns 65. Martin wants to have enough money to replace 75% of his current income less what he expects to receive from Social Security at the beginning of each year. He expects to receive \$20,000 per year from Social Security in today's dollars. Martin is conservative and wants to assume a 6% annual investment rate of return and assumes that inflation will be 4% per year. Based on his family history, Martin 2) 3) 4) 5) 6) 7) 1 expects that he will live to be 95 years old. If Martin currently earns \$100,000 per year and he expects his raises to equal the inflation rate, approximately how much does he need at retirement to fulfill his retirement goals? a) \$1,268,887. b) \$1,445,239 c) \$2,242,055. d) \$2,262,780 e) \$3,057,348.

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents