Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the framework in the previous two problems, you have found that you need to have a total of $1,503,073 in savings at the

Based on the framework in the previous two problems, you have found that you need to have a total of $1,503,073 in savings at the time you retire, in 33 years. You currently only have $27,326 saved up in your retirement accounts. If you anticipate that your 80/20 investment portfolio will return an average of 9.84% per year, how much extra must you save every year to reach your goal?

Assume that you'll be saving the extra amount by the end of each year.

Figure out how much your previously saved amount will grow to by retirement, subtract it from total necessary amount, then find how much you need to save every year to reach your goal.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Ultra High Net Worth Bankers Handbook

Authors: Heinrich Weber, Stephan Meier

1st Edition

1905641753, 978-1905641758

More Books

Students also viewed these Finance questions