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Your sister turned 35 today, and she is planning to save $4,200 per year for retirement, with the first deposit to be made one year
Your sister turned 35 today, and she is planning to save $4,200 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that will provide a return of 9% per year. She plans to retire 30years from today, when she turns 65, and she expects to live for 25years after retirement, to age 90. Under these assumptions, how much can she spend in each year after she retires? Her first withdrawal will be made at the end of her first retirement year.
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