John Bassett, the owner of the Tampa Bay Bandits, offered a deal where if they sell out the stadium during the 1985 season one fan will win a million dollar annuity. The catch, they will be paid $50,000 a year for 20 years starting in 20 years. This is a true story!

Lets say you are John Bassett and you go to the bank. The bank offers you an APR for this payout annuity of 4.2% compounded annually.

To soften the blow the bank allows you to make monthly payments towards the annuity for the next 20 years at 3.8% compounded monthly.

Retirement Plan

1: Estimate the number of years until you want to retire: _____________

2: Estimate the number of years you plan to be retired: _____________

3: Estimate the minimum amount you need as income each month in retirement: _____________