Question
You are 30 years old today and are planning for retirement. You would like to work for 30 more years and retire when you are
You are 30 years old today and are planning for retirement. You would like to work for 30 more years and retire when you are 60. You currently earn $100,000 per year. You expect inflation will average 3% per year over the next 30 years. To simplify this problem, assume your income is paid annually and you receive a salary of $100,000 today. You will make your first retirement withdrawal in 31 years at the age of 61.
To simplify this problem, assume your income is paid annually and you receive a salary of $100,000 today. You will make your first retirement withdrawal in 31 years at the age of 61.
What is the withdrawal amount on your 61st birthday (in 31 years) that is the equivalent of today's $100,000?
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