You plan to retire 20 years from today and start withdrawing $85,000 per year at the end of each year for the next 40 years with the first withdrawal occurring at the end of year 21.

You expect to inherit $65,000 from your aunt 5 years from today which you will add to your retirement savings.

Over the next 20 years, you want to save a constant amount each year to cover your retirement needs. (you will make the deposits at the end of each year starting one year from now).

Your retirement account earns 8% and so will your retirement funds.

How much do you need to save each year over the next 20 years to achieve your retirement goal?

What is the value of the inheritance as of the time of the retirement (end of year 20)?

How much money needs to be in your account 20 years from today to satisfy your retirement needs?