Question
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.
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