Landon, age 47, is single and works at a local bank. His gro…
Landon, age 47, is single and works at a local bank. His gross salary is $100,000 annually. He invests 8% in his 401k plan, 10% into other investments, pays about $11,500 in federal income tax, and also pays FICA tax. His mortgage principal and interest is $1,500 per month and he expects to have it paid off by the time he retires in 20 years. What is the most appropriate, simple method for calculating Landon’s wage replacement ratio (WRR)?