SOLUTION: You are currently making $70,000 a year after taxes and are interested in maintaining your current income. If you are expecting $2,500 a month from Social Security, how much will y

Algebra ->  Finance -> SOLUTION: You are currently making $70,000 a year after taxes and are interested in maintaining your current income. If you are expecting $2,500 a month from Social Security, how much will y      Log On


   

Question 1036439: You are currently making $70,000 a year after taxes and are interested in maintaining your current income. If you are expecting $2,500 a month from Social Security, how much will you need to withdraw from your retirement account monthly?
Answer by Aldorozos(172) About Me  (Show Source):
You can put this solution on YOUR website!
If we are receiving $2500 a month, this means that we are receiving $2500 *12 = $30,000 annually from the social security. We are short for $40,000 annually. Assuming that the $2500 from the social security is after tax, then we need to withdraw $40,000 after tax from the retirement account to keep the current $70,000.