3 A Retirement income today B $45,000 C D E 4 Years to retirement 5 Years of retirement 6 Inflation rate 7 Savings 8 Rate of return 9 10 Calculate value of savings in 10 years: 11 Savings at t = 10 10 25 5.00% $100,000 7.00% Formulas #N/A 12 13 Calculate value of fixed retirement income in 10 years: 14 Retirement income at t = 10 #N/A 15 16 Calculate value of 25 beginning-of-year retirement payments at t=10: 17 Retirement payments at t = 10 18 19 Calculate net amount needed at t = 10: #N/A 20 Value of retirement payments 21 Value of savings 22 Net amount needed #N/A #N/A #N/A 23 24 Calculate annual savings needed for next 10 years: 25 Annual savings needed for retirement #N/A 26 LL F