1a. Shelly and Mark wanted to review their retirement preparation and make sure they are on track. Shelly currently has 229k in her 401k. She has an income of 132k a year. She is contributing 18% to her 401k and has an employer match of an additional 4%. Her husband Mark has been unemployed, but just stared a new job making 100k a year. He has 70k in an old 401k from a previous employer. With his new job he is planning to contribute 10% and has a company match that pays an additional 3%. They plan to retire in 22 years when Mark is 65 and Shelly will be 62. How much will they have in retirement savings if they earn 6% on their investments? 1b. If they plan to take 4% out a year what would their income be in the first year of retirement?
1a. Shelly and Mark wanted to review their retirement preparation and make sure they are on track. Shelly currently has 229k in her 401k. She has an income of 132k a year. She is contributing 18% to her 401k and has an employer match of an additional 4%. Her husband Mark has been
1b. If they plan to take 4% out a year what would their income be in the first year of retirement?
2a. Terry is doing some retirement planning. He is 60 years old and wanting to retire at age 65. He has about $290k in retirement savings. He just finished paying off his home and wants to now focus on saving for retirement. He has a very good income and makes about 255k a year. He is contributing about 12% to his 401k and based off his match his employer adds an additional 4%. Terry and his wife are also planning to max out their IRA contributions at 8k each for the remaining years until retirement. How much will he have in retirement accounts at age 65?
2b. They feel they need to save more than this now that their mortgage is paid off. They feel that they will be able to save an additional $100k a year each year for the next 5 years. If that investment averages 5% per year how much would they have in that account in 5 years.
2c. How much would they have between the two accounts?
2d. If they then plan to then live on 4% of that account each year how much would they be able to spend in the first year of retirement?
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