(1) Present Value of Future Lifetime Savings = (Net) Current Savings + Future Lifetime Savings
(2) Samuelson Share
(3) Maximum Leverage Ratio 2:1
Ideal Investment Target = Present Value of future lifetime savings * Samuelson Share
Case A:
Current Savings: 60,000
Future Lifetime Savings: 400,000
Samuelson Share 40% (conservative)
( 60,000 + 400,000 ) * 40% = 184,000
