Problem
Jordan wants to retire in 15 years when he turns 65. Jordan wants to have enough money to replace 75% of his current income less what he expects to receive from Social Security at the beginning of each year. He expects to receive $20,000 per year from Social Security in today's dollars. Jordan wants to assume a 6% after-tax annual investment rate of return and assumes that inflation will be 4% per year. Jordan expects that he will live to be 95 years old. He makes the maximum 401(k) contribution allowed. If Jordan currently earns $100,000 per year and he expects his raises to equal the inflation rate, approximately how much does he need at retirement to fulfill his retirement goals?