Saving for retirement

Suppose you have decided to set up a personal pension fund for your retirement. You just turned 25. You expect to retire at age 65 and believe it is reasonable to count on living at least 20 years after retirement. Furthermore, you wish to have an annual income of $100,000 during your retirement starting when you turn 65, and that upon receipt of the twentieth payment, the entire capital sum would have been distributed. You have been offered two investment plans by your financial adviser: (1) an