Question
You are currently 30 years old. You would like to retire at 65 and be able to withdraw $85,000 for 25 years after the retirement
You are currently 30 years old. You would like to retire at 65 and be able to withdraw $85,000 for 25 years after the retirement at the beginning of each year. The first withdrawal will occur the day your retire. You have managed to save $50,000 that you will invest in an IRA. In addition to your initial $50,000 investment, how much will you have to deposit into the IRA every year starting one year from now in order to achieve your retirement goal? The IRA is expected to generate 8% (compounded annually) before the retirement and 5% (compounded annually) after the retirement. The last deposit will occur at the same time when the first withdrawal is made
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