Bob is 37 years old and is an account manager with a large telecom company.Hes been dragging his feet with his retirement plan, opting instead for expensive trips to Vegas and Aspen.Hes decided its time to get serious about saving for his retirement.He plans to retire at age 67 and travel the world.Because of this plan, he figures he needs approximately $70,000/year in retirement.His grandfather lived until he was 86 and his dad is in perfect health at age 70, therefore Bob figures he should plan to be around until hes 90.So far, he has $11,000 saved for retirement and because of his aggressive investment philosophy, is planning for a return on all his investments before retirement of 8%. Following retirement he will invest more conservatively and will plan for a 5% return on investments. His companys retirement plan is defined contribution, so he doesnt plan on getting a pension.He is not counting on social security to be around, so he isnt including that in his plan.Thus, his entire retirement will be funded on his own savings.

How much will Bob need to saveeach yearto be ready for retirement at age 67?