J. An Even More Realistic Retirement Planning Problem How much should you save each month for retirement given the same assumptions as above with the following changes? You save and withdraw monthly and not annually. Om - 12 Your first save is one month after your 30th birthday. Your first withdrawal is one month after your 60th birthday. The interest rate is different when you work compared to when you are retired. o When you work you earn 6% per annum (or 0.06/12 - 0.005 per month) o When you retire you earn 4% per annum (or 0.04/12 -0.0033333 per month). o Why? Because you take less risk in retirement, which means you have fewer stocks in your portfolio and more bonds. Bonds earn lower returns than stocks. ANSWER: X (per month) = 1 414.51 47 ul unit and it may even help you see the equation of value. No. I don't have enough time. B) . I. A More Realistic Retirement Planning Problem How much should you save each year for retirement given the following assumptions? You are 30 years old today. You will start saving on your 31st birthday. You will save every year up to (and including) your 60th birthday. You will retire on your 60th birthday. You will start withdrawing your retirement income on your 61st birthday. o Q: How will you live for the year after your 60th birthday? A: Don't worry about it! These assumptions let us use ordinary annuities. Your retirement withdrawal is $90,000 per year. You will make your last withdrawal on your 85th birthday. I moldes The interest rate is 5%. The time line is shown below