Question
You graduate from college and your starting salary is $145,000 at age 26. For retirement, you contribute 3.5% of your annual salary and Goldman matches
You graduate from college and your starting salary is $145,000 at age 26. For retirement, you contribute 3.5% of your annual salary and Goldman matches an additional 6% (for a total annual deposit equal to 9.5% of your salary), with the first deposit being made at the end of your first year at the firm. To make things easy, your 27th birthday happens to fall on the same day the deposit is made. a. If you work for 50 years and retire at age 76, how much money will you have saved for your retirement if you earn an average return of 8.8% on your investment? b. How much can you withdraw (pre-tax) each year of your retirement if you live 20 years after you retire at age 76 (i.e., you check out on your 96th birthday)? Assume you earn a 4.8% return per year in retirement. c. How much would you need to save each year during your career to provide yourself with $700,000 of after-tax income in each year of your retirement and leave $1,000,000 in inheritance to your kids? Assume your effective tax rate is 35%. please answer in excel
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