Question
Assume you are now 21 years old and will start working as soon as you graduate from college. You plan to start saving for your
Assume you are now 21 years old and will start working as soon as you graduate from college. You plan to start saving for your retirement on your 25th Birthday and retire on your 65th birthday. After retirement, you expect to live at least until you are 85. You wish to be able to withdraw $44,000 every year for the time you retire until you are 85 years old. The average inflation rate is likely 5 percent. Calculate the lump sum you need to have accumulated at age 65 to be Abel to draw the desired income. Assume the annual return on your investment is likely to be 10%
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