Alexa’s gross monthly pay is $3810.

To maintain her current way of life, how much should she have saved by the time she retires?

Question

Alexa’s gross monthly pay is $3810. 

To maintain her current way of life, how much should she have saved by the time she retires?

jim_thompson5910 · Answer

it doesn't provide her net pay (which is equal to gross pay minus deductions)

jim_thompson5910 · Answer

but let's assume her net pay is something nice and round like $3,000

jim_thompson5910 · Answer

If her net monthly income is $3,000, then how much is her net yearly income?

anonymous · Answer

36000

jim_thompson5910 · Answer

so that's how much she makes a year (assuming her net monthly income is $3,000)

now multiply that figure by the number of years she will live past retirement. It's a good idea to go with a high figure like 30 (if she retires at 65, then she'll live to 65+30 = 95 years old, which is reasonable and above average in my opinion)