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Assume your goal is to retire at age 65 and you estimate you will live until age 90. Your income at age 30 is $50,000
Assume your goal is to retire at age 65 and you estimate you will live until age 90. Your income at age 30 is $50,000 and you expect this to increase at a rate of 8% per year. The nominal rate of return on your investment portfolio is 6% and you plan to save 15% of your income per year. The expected rate of inflation is 3%. How much will your fund pay per year during your retirement? I would like to see it worked out so I can understand it.
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