Question
Mike currently 35, has $15,000 saved for retirement. He is currently saving $450 at the beginning of every month and his employer matches his total
Mike currently 35, has $15,000 saved for retirement. He is currently saving $450 at the beginning of every month and his employer matches his total savings contribution on a monthly basis. Mike projects that he could earn 7% on his savings. He plans to retire at 65 and expects to live until age 90. His current expenditure on basic needs at the beginning of every month is $2200 every month which is expected to increase with inflation of 4%. How much lump sum funds would Mike need at the beginning of retirement to take care of his basic needs during the post-retirement period? Assume the same inflation and rate of return.
$1,226,126 | ||
$1,219,721 | ||
$1,556,859 | ||
$1,560,601 |
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