Question
a. You want to retire in 30 years and be able to withdraw the equivalent of $90,000 per year (in today's dollars) from a retirement
a. You want to retire in 30 years and be able to withdraw the equivalent of $90,000 per year (in today's dollars) from a retirement fund. Assume 3% inflation. You plan to be retired for 20 years. Assuming you can earn 12% on your investments BEFORE retirement and 7% on your investments DURING retirement, how much will you need to save per month in order to be able to fund this retirement?
b. You want to retire on the equivalent of $50,000 per year in today's money. Inflation is expected to be 3%. You will retire in 30 years. You will earn 10% annually on your investments from not till retirement and you will earn 8% DURING retirement (which is expected to last 20 years). How much do you need to save per MONTH in order fund this retirement?
c. How much should you save per month in order to retire based on the following data: You want the equivalent of $100,000 per year in today's dollars, 3% inflation, retire in 30 years. You will earn 10% on investments before retirement and 7% during retirement. You will be in retirement for 20 years. No further adjustment for inflation during the retirement period.
d. How much should you save per month in order to retire based on the following data: You want the equivalent of $75,000 per year in today's dollars, 4% inflation, retire in 30 years. You will earn 10% on investments before retirement and 7% during retirement. You will be in retirement for 20 years. No further adjustment for inflation during the retirement period.
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a 90000 now at 3 inflation will become 9000010330 after 30 years ie 218454 is required in retirement years for 20 years Calculate the PV of these paym...Get Instant Access to Expert-Tailored Solutions
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