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If inflation is 3% per year, then an annual salary of $60,000 today will rise to about $145,000 in 30 years. One of Susans clients
If inflation is 3% per year, then an annual salary of $60,000 today will rise to about $145,000 in 30 years. One of Susans clients wants to maintain a purchasing power of $60,000 in todays dollars, at least for the first year of retirement, so she is planning to draw $145,000 a year at year-end after retirement. How much must she save monthly to retire in 30 years and draw an annual pension of $145,000 for 20 years after retirement? Assume a 10% per year return on investments
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