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Steve is planning for his retirement. He is currently 4 0 and plans to retire in 2 7 years, at age 6 7 . He
Steve is planning for his retirement. He is currently and plans to retire in years, at age He expects then to live an additional years, until age He expects inflation to average per year. Based on his assumptions about inflation and Social Security, and his desired Wage Replacement Ratio, he believes he will need $ per year to withdraw from his retirement fund in nominal dollars in the first year of his retirement. He believes he can earn a nominal return on his retirement investments of per year before and after retirement. Assume withdrawals during retirement are at the beginning of each year.
How much does he need to accumulate by retirement?
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