Question
I need to construct a personal retirement plan. I need to show concepts of future values, annuities, and compounding to my personal financial planning. This
I need to construct a personal retirement plan. I need to show concepts of future values, annuities, and compounding to my personal financial planning. This is all hypothetical but in this example, my current age of 42 and today I have 75,000 thousand vested in my 401k retirement account. I would like to retire at the age of 67. How much would I have to invest to have close to 1 million at the age of 67. I make 80,000 per year and I currently put 5% to my 401k which is matched by my employer.
How much would I have to add every year or every month.
What kind of annual investment return can I expect to earn on this investment.
How would I calculate the future value of this investments at retirement?
What would I have to invest in to meet my goal considering historic returns.
I might have to change the retirement age depending on the results. Can I also see what the variables would look like I choose to retire at 65, 67 or 70. And what if get more aggressive and add more annually.
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