Yair earns $⁢90,000 a year and wants to maintain 75% of his income after retiring. How much should he save if he uses the 4% rule for retirement planning?

First find 75% of Yair’s $90,000 income: 0.75 × $90,000 = $67,500 per year. Under the 4% rule, that annual income is 4% of his savings, so he needs $67,500 ÷ 0.04 = $1,687,500. The correct choice is $1,687,500.

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