This is the equal annual savings required 313 - =PV[ 35433-321312) i A _ L Age now 35 i Age at retirement 60 _3__Age want to receive retirement Income until 90 _1_ Investment Rate 7% i Investment Rate during retlrement 5% i Inatlon Rate 3% i Salary Growth Rate 6% A Current Year Salary $80,000 i Amount already saved for retirement 0 E Amount you want to leave to heirs $500,000 g i Amount needed in lstvear of retirement 343 350 i Amount needed at start of retirement [nothing left to heirs} i Amount needed at start of retirement {$500,000 left to heirs) {$5,353,315} g Equal Annual Savings $35,275 16 314 v =wias,[aa-Bz},alz,sooooo} n I (3) This calculated exactly as above, with one additional input : fv = 500,000 This is the amount to be left to heirs PV is calculated as $5,393,815 This is the amount needed on the day of retirement, assuming $500,000 will be left to heirs Now do the same calculation as part 2, but include the amount you decided to leave to your heirs above. Using your answer to part 3, find the equal annual amount you would need to save every year from the age you input as now until the date you retire to reach the amount in answer 3, use the investment rate you chose above. Now let's assume you are 10 years into saving for your retirement, so 10 years older than what you chose as your age now and assume you earned 2% less than expected on your investments and you ended up putting away only half as much as you assumed above. Now calculate the equal annual amount you would need to save every year to still save to the amount in part 3, assuming you can now earn the assumed investment rate. Assume that the amount you calculate in part 5 is too much for you to possibly save, suggests so ethical options