respond to We can calculate the annual contribution needed over the course of $35$ years needed to reach the target of $2,000,000$ in savings using the formula for future value of annuity. FV$=$P$(1+$r$^$n$-1)/$r $($Kidwell et al$.,2016).$ Where FV is the target savings goal $($$$2,000,000),$ P is the annual contribution $($what we are solving for$)$ r is the annual interest rate as a decimal $(\mathrm{.}05)$ and n is the number of periods $(35$ years$).$ Entering in the given values and the formula is $$2,000,000=$P$(1+\mathrm{.}05^35-1)/\mathrm{.}5.$ Simplifying that leads you to $$2,000,000=$P$(4\mathrm{.}52/\mathrm{.}05)$ and If we solve for P we then get $$100,000=$P$(4\mathrm{.}52)($Divide by $4\mathrm{.}52)$

P$=$$$22,143\mathrm{.}41$ per year $($assuming $5\%$ interest rate$)$

There are flaws and variables to consider when planning on investing for retirement. Inflation can cause concern as this formula assumes a constant interest rate over the entire period but in reality, this number can fluctuate $($RetireGuide $2023).$ There are also unexpected expenses and income variables that may occur such as a loss of a job or an unexpected emergency expense that might limit how much you put in or can afford. There are also tax laws and regulations that may change over time affecting the after$-$tax value of your savings. Actions that you can take to minimize these risk such as having regular financial and retirement plan reviews to adjust your contributions, creating diversified investments to spread risk, and seeking advice from financial experts.