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Please estimate how much of a monthly 401(k) contribution Ragnar must make for the next 35 years to achieve his retirement goal of $4 million.
Please estimate how much of a monthly 401(k) contribution Ragnar must make for the next 35 years to achieve his retirement goal of $4 million. Remember that his employer will be making a "S1-for-$1" matching contribution each month up to a maximum of 5% of Ragnar's monthly salary. Assume an annual return of 9% on his 401(k) account. Ragnar already has $8,000 in his 401(k). Use Beginning of Period payments in your calculations. Round your numbers to the nearest $1. For simplicity assume that Ragnar's salary will remain constant at $70,000/year over the next 35 years. Relax - your numbers do NOT have to be exact. You will get credit if they fall within an appropriate range. Employer Matching Contribution each Month: Ragnar's Monthly 401(k) Contribution
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