Advanced Algebra with Financial Applications B Unit 3: Retirement
17,202
26,374
Essay
Your teacher will grade your responses to ensure you receive proper credit for your answers.
4. Taylor is a 35-year-old woman who has not yet planned for retirement. She would like to retire (6 points)
at age 70. Answer each question using complete sentences.
Part I: In what type of investments should Taylor deposit her money? Why?
Part II: At what age, or point in your life, would you like to start saving for retirement?
Part III: In what type of investments would you like to deposit your money into when you
start saving for retirement? Why?
Part 2: As soon as you have a full-time job, it is important to start saving for
retirement. Financial experts suggest that, because of reduced living expenses,
you'll need about 70-80% of your annual salary at time of retirement to continue
living a similar lifestyle. For example, if you are making $75,000 per year at age
65, then 75% of that, or $56,250 per year, should assure you the same level of
living.
Part 3:
5. Why do you think monthly expenses are less during retirement age than in younger years? (3 points)