Question

You make $29/hour, work 40 hours/week, 50 weeks a year. You save 12% of your

GROSS Your employer matches your savings up to 6%. Your spouse ALSO
contributes $150/month to your retirement fund.
Your average return over 50 years of work is 6.7%. How much will you have
accumulated once you retire in 50 years?

Answer 1

First, let's calculate your gross income per year:

Gross income per hour = $29/hour
Gross income per week = $29/hour * 40 hours/week = $1160/week
Gross income per year = $1160/week * 50 weeks/year = $58,000/year

Next, let's calculate the amount you save per year:

Savings per year = Gross income per year * 12% = $58,000 * 12% = $6,960

Now, let's calculate the employer matching contribution:

Employer matching contribution = Savings per year * 6% = $6,960 * 6% = $417.60

Next, let's add the spouse's contribution to the savings per year:

Savings per year = Savings per year + Spouse's contribution = $6,960 + $150/month * 12 months/year = $8,760

Finally, let's use this information to calculate the amount you will have accumulated in 50 years:

Amount accumulated in 50 years = Savings per year * (1 + 6.7%)^50 + Employer matching contribution * (1 + 6.7%)^50
Amount accumulated in 50 years = $8,760 * (1 + 0.067)^50 + $417.60 * (1 + 0.067)^50

This is the approximate amount you will have accumulated in 50 years of work, taking into account your gross income, savings, employer matching contributions, spouse's contributions, and average return on investment.