Question
Bert and Bertha estimate when they retire in 18 years that their retirement portfolio will need to have a value of $2,000,000 to finance their
Bert and Bertha estimate when they retire in 18 years that their retirement portfolio will need to have a value of $2,000,000 to finance their desired retirement lifestyle. They believe inflation will average 2% over time and their retirement investment return will average 8% until they retire. After they retire, they will invest more conservatively and the portfolio will average a 5% return during a 25 year retirement. If they currently have nothing saved for retirement, how much will they need to save at the end of each year to meet their retirement goal?
- $53,400.
- B. $65,440.
- C. $71,090.
- D. $49,450.
- E. $46,730.
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