Question: Your client has the ability to immediately contribute $1,700 per month until retirement and can add an additional $3,000 per month until retirement starting two
Your client has the ability to immediately contribute $1,700 per month until retirement and can add an additional $3,000 per month until retirement starting two years from now. They would like to retire in five years and have a goal of $7,100 in monthly income during retirement. They currently have $200,000 invested in an index fund. They are willing to adjust the date of retirement but hope to keep it as close to five years as possible. They are willing to take on above average risk but are unable to increase their monthly contribution significantly. Rate is 10%.
Is it possible to reach their 5-year retirement goal given the monthly contributions stated above? If so, how do they do it? If not, what changes need to be made so they can retire with $7,100 in monthly income?
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