Income Taxation of Disability Payments

Erika wants $50,000 a year in today’s dollars in retirement. She anticipates retiring in 10 years and living in retirement for 30 years. Erika can earn 7% on her investments and she expects inflation to average 4%. Approximately how much should Erika have saved by the day she retires to meet this goal?

  1. $913,000
  2. $983,000
  3. $1,473,000
  4. $1,515,000