Jim wants to retire in $30$ years when he turns $60$ years old. He is in good health and expects to live to be $90$ years old. He wants his monthly income to have the same purchasing power as $$15,000$ today on the day he retires. This could be a challenge because he expects the inflation rate to be $4\%$ per year on average for the rest of his life. Once in retirement, Jim will have to lower the risk of his portfolio because he cannot take the risk suffering significant investment losses. He estimates his lower risk retirement portfolio will produce $8\%$ per year and his income tax rate will be $25\%.$

What is the minimum monthly initial payment Jim needs in $30$ years to achieve his goal?

Jim wants to retire in $30$ years when he turns $60$ years old. He is in good health and expects to live to be $90$ years old. He wants his monthly income to have the same purchasing power as $$15,000$ today on the day he retires. This could be a challenge because he expects the inflation rate to be $4\%$ per year on average for the rest of his life. Once in retirement, Jim will have to lower the risk of his portfolio because he cannot take the risk suffering significant investment losses. He estimates his lower risk retirement portfolio will produce $8\%$ per year and his income tax rate will be $25\%.$

What is the minimum monthly initial payment Jim needs in $30$ years to achieve his goal?

$$10,000$

$$18,000$

$$72,015$

$$48,650$