TOP-DOWN APPROACH EXAMPLE
01.Core Concepts
Marleen earns $100,000 a year, pays 7.65 percent of her gross pay in Social Security payroll taxes, and saves $12,350 of her gross income. Description Percentage Salary Salary in % terms 100.00 $100,000 Minus: Current savings in % terms (12.35%) (12,350) Minus: Payroll taxes in % terms (7.65%) (7,650) Wage replacement ratio in % terms 80.00% $80,000