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Roger Bennett is 60 years of age. When he retires at age 65, he would like an income of about $24,000 per year after tax.
Roger Bennett is 60 years of age. When he retires at age 65, he would like an income of about $24,000 per year after tax. He expects that he will be taxed at a marginal tax rate (MTR) of 22% on retirement. He will get CPP and OAS benefits totalling about $12,000 per year. He wants the balance to come from his RRSPs. He currently has an RRSP balance of $400,000. Not including future RRSP growth as a factor, how much more must Roger have in his RRSP before retirement to achieve his goal of receiving $24,000 per year after tax (rounded to the higher thousand), if he is expected to live to be 90 years of age?
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