1. Florian plans to retire in 25 years and spend 35 years in retirement. He currently earns $82,500 before-tax annually, which increases annually with the level of inflation. He has determined that he needs 70% of his pre-retirement income for his retirement years. He currently has $282,000 in his RRSP account and $10,000 in a non-registered account. He will earn 5.50% before retirement and during retirement he will readjust his portfolio to be more conservative earning 3.50%. Inflation is 2% and his marginal tax rate is 35%. All payments are at the end of the period unless stated otherwise.

a) What is the amount he needs to have saved at retirement?

b) What is Florian's shortfall?

c) If Florian saves monthly. How much does he need to save each month to address his shortfall and reach his retirement goal?