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You will retire in 4 4 years. At that time you will begin making annual withdrawals and the first withdrawal will need to have the
You will retire in years. At that time you will begin making annual withdrawals and the first withdrawal will need to have the purchasing power that $ has today. You will withdraw the same amount of money each year of retirement and you recognize that its purchasing power will fall as inflation continues You plan to live for years during retirement, necessitating withdrawals. Inflation equals per year. Obviously, you will need to save and invest money to generate the nest egg that will be spent during retirement. The "fund" you plan to invest in earns per year until retirement, and then during retirement it earns per year. How much must you save each year with payments into your retirement savings vehicle beginning one year from today in order to meet your retirement needs?
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