You Are 30-Years Old and You Make $110,000 Per Year

question 39

Essay

You are 30-years old and you make $110,000 per year. You calculate that you cannot retire until you have accumulated a lump sum amount of $2,000,000 to live on after retirement. You contribute 6 percent of your salary to your 401(k)and your employer contributes 3 percent of your salary. You plan on investing 65 percent of your funds in equities on which you expect to earn an average rate of return of 10 percent,and the rest in bonds projected to earn 5 percent. If your salary does not grow,how old will you be when you can retire?

---

Definitions:

Sutures

Thread-like materials used to close a wound or surgical incision; also refers to the immovable joints between the bones of the skull.

Nasal Cavity

A large air-filled space above and behind the nose in the middle of the face that warms, moistens, and filters air entering the respiratory system.

Vomer

A small, thin bone forming part of the nasal septum between the two nasal cavities.

Lacrimal

Pertaining to tears or the glands that produce tears.