5. When I retire, my goal is to have saved $185,000 in a retirement account. I believe these funds will be sufficient to maintain my desired lifestyle through my retirement years. Input this figure BEFORE you calculate anything on the Excel template. Just take a guess. What do you think is a reasonable amount to have as your nest egg on the day you retire (age 65 in this example) that would support the annuity withdrawal from the previous question. Age: 28 Retirement Age: 65 37x 5,000 = $185,000

6. Based on my total retirement savings from question #5, assuming those funds are invested at 5% compounded annually, I am able to withdraw $______________ from my retirement fund each year over the next 20 years. (Show all inputs below.) Compute with the financial calculator (solve for PMT). INPUTS:

N =

I/Y =

FV =

PV =

PMT =

7. In order to meet your retirement goals (withdrawing an annuity stream for 20 years) from question #4, how much would you need to have in your retirement account at age 65? In other words, based on the amount of the annuity from question #4, the total retirement savings account must have an actual balance of $______________ in the account on the day of retirement at age 65 assuming a rate of 5% compounded annually. This is a present value of annuity calculation (CPT PV). (Show all inputs below.) INPUTS:

N =

I/Y =

FV =

PV =

PMT =