Question

Tom and Sharon Stieglitz plan to retire in 32 years. They estimate that their retirement income needs is 75% of the $80,000 current level of annual household expenditures and they will live in retirement for 38 years. They expect to receive annual social security benefits $21,000, annual employer pension funds $13,000, and no other retirement income sources. They are comfortable of getting 8.5% return on their investment before retirement and a 6% return on their assets after retirement. Assuming a 3% inflation rate, what is the annual savings required to fund their retirement nest egg?

6,314.47
	$8,942.15
	$26,000
	$34,000
	$7,073.32

2.

Anna is considering an additional charitable contribution of $3,350 to a tax-deductible charity, bringing her total itemized deductions to $14,000. She will file as single, which gives her a $12,200 standard deduction. If she is in a 28 percent tax bracket, how much will this charitable contribution reduce her taxes?

	$0
	$938
	$3,350
	504
	$3,920

Answer 1

1)