Based on the annual expenses worked out in [2], calculate how much total savings you should have on the day you retire (i.e. the present value of all the expenses you need for retirement on the day you will stop working) using the rate of return assumed in [1D].

A) Time periods: Estimate how long you have to save and how long you will live after stop working by stating how old you are now, when you will retire, and how long you will live (eg. you are 35 years old, plan to retire at the age of 60 and expected to live until 80, which suggests 25 years of saving period and 20 years of life after the time you stop working.). B) The annual expenses (eg food & living, rent / mortgage, healthcare, childcare, travelling, etc.). Estimate how much you will need during those retirement years based on today's dollar. Also, consider increasing the amount over different periods (eg, you may need a total of $20,000 a year in the first 10 years, then $30,000 per year over the next 10 years, etc.). C) Inflation rate: Estimate an average annual inflation rate appropriate for now until the end of your life. Conduct a research to support your estimation. D) Rate of return: Estimate an average annual rate of return on investment you can earn on your savings. Discuss your investment plan (eg. asset types, expected rates of return, risks, etc.) to validate your estimation. E) Current savings: State how much you have already set aside for retirement today or the value of allowances you expect to receive (eq. social security, pension or provident funds, etc.). This is zero if you have not begun saving or are not entitled to any benefits. 2. Compute the future values of each annual expense discussed in [1B] with inflation rate chosen in [1C]. That is, based on the example given, find the future value of the expense you will need in 25 years from today (ie when you are 60) by compounding an inflation of, say, 3% per year to the amount in today's dollars. Repeat this process for all the retirement years. If the expense amounts were assumed to be increasing over time, be sure to consider that in the calculations. 3.Based on the annual expenses worked out in [2], calculate how much total savings you should have on the day you retire (ie the present value of all the expenses you need for retirement on the day you will stop working) using the rate of return assumed in [1D). 4.Based on the total savings required found in [3] and the current savings reported in [1E], find out how much you need to save each year now until the day you will stop working, given an interest rate you have described in [10]. 5. Based on the answers in previous parts, assess whether you will be able to achieve the target for retirement. If not, discuss how you may adjust your plan