Silvia wants to retire at 65 and live on $40,000 a year. How much does she need to save to ensure that her retirement funds last until she is 85?

Select the best answer from the choices provided.

$800,000 because she will need to save for 20 years times $40,000

more than $800,000 because taxes and inflation will increase the value of her savings

less than $800,000 because returns will continue to increase the amount in her savings even after retirement

more than $800,000 because compound return will reduce her savings

Question

19 August, 20:14

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Answers (1)

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Martha Chavez · Answer 1

She must save 800,000 because that's how much she'll need in those 20 years of retirement. The first choice is correct.