Question
25 years old and $70,000 yearly salary. 1.) you intend to retire at the age of 65, (40yrs). if the inflation rate over the next
25 years old and $70,000 yearly salary.
1.) you intend to retire at the age of 65, (40yrs). if the inflation rate over the next 40 years is expected to average 2.5% per year, how much money will you have to be earning at the start of your retirement to have the same purchasing power your 70,000 salary today? Ignore taxes, show work
2.) you need to have $250,000 per year to live comfortable in retirement to allow for your passion for travel. You feel you will live to your 100th year (35 years after retirement). You believe that the rate of return on your investments will be 5% per year. How much of a retirement fund must you have in order to start paying yourself 250,000 per year on the first day of retirement and the beginning of each year thereafter until your 100th year? show work
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