Deangelo wants to retire with an income of 50% of his current $⁢120,000 salary. Using the 4 percent rule, how much does he need to save by retirement?

Deangelo wants annual retirement income equal to 50% of $120,000, which is $60,000. Under the 4 percent rule, that income is 4% of his retirement savings, so divide $60,000 by 0.04: $60,000 ÷ 0.04 = $1,500,000. He needs to save $1,500,000 by retirement.

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