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a software developers current annual gross wage is 93400 for retirement the developer wants to have enough saved to live off 80% of the current annual gross wage and draw 4% the first year. what is the total amount the developer will need

User James Reed
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To calculate the total amount the software developer will need for retirement, we can follow these steps:

1. Calculate the amount the developer wants to live off annually:

80% of the current annual gross wage = 0.8 x 93400 = 74720

2. Calculate the amount the developer needs to have saved for retirement:

We can use the 4% rule, which suggests that the developer can safely withdraw 4% of their retirement savings in the first year of retirement and adjust the withdrawal amount for inflation in subsequent years.

So,

Amount needed = Annual living expenses / Withdrawal rate

Amount needed = 74720 / 0.04 = 1868000

Therefore, the software developer will need a total retirement savings of $1,868,000 to be able to live off 80% of their current annual gross wage.
User Maxim Samburskiy
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