Lucas plans to retire in 15 years. His current household expenses are $75,000 per year. He estimates that when he retires, he will no longer have $3,600 in monthly mortgage payments, $5,000 in annual commuting expenses, and $12,000 in annual budgeted 401(k) contributions. However, he does expect that his health-care costs will rise by $3,700 per year and his entertainment expenses to total $8,000 each year. What will be his estimated retirement expenses, in today's dollars, if using the adjusted expense method?

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The Answer of Lucas plans to retire in 15 years. His current household expenses are $75,000 per year. He estimates that when he retires, he will no longer have $3,600 in monthly mortgage payments, $5,000 in annual commuting expenses, and $12,000 in annual budgeted 401(k) contributions. However, he does expect that his health-care costs will rise by $3,700 per year and his entertainment expenses to total $8,000 each year. What will be his estimated retirement expenses, in today's dollars, if using the adjusted expense method?

Lucas Plans to Retire in 15 Years