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Jim has just celebrated his 45th birthday and is planning to retire at the age of 65. In order to support himself after he retires,

Jim has just celebrated his 45th birthday and is planning to retire at the age of 65. In order to support himself after he retires, he has decided to save a portion of his salary each year for the next ten years. He will receive his first salary when he turns 46, and it will be $200,000. He expects his salary to increase at a rate of 2% per year.

To save for his retirement, Jim will set aside $20,000 of his salary each year for the next ten years. This money will be invested in an account with an Annual Percentage Rate (APR) of 6%, which will be compounded annually. From ages 56 to 65, Jim will set aside 10% of his salary each year, which will be invested at 4%.

Jim plans to withdraw all his savings in 10 years to purchase a property he expects to appreciate by 50% at retirement. Jim anticipates living until the age of 90 and wants to be able to withdraw $40,000 per year from his savings after he retires. His first withdrawal will be when he turns 66. Please note the interest rate after retirement is 3% and is expected to remain constant until the age of 90.

Will Jim have enough money to meet his post-retirement financial needs?

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