Youre 55 years old today, and you wish to start saving for your pension. Here are the
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Question:
Youre 55 years old today, and you wish to start saving for your pension. Here are the parameters:
You intend to make a deposit today and at the beginning of each of the next 9 years (that is, on your 55th, 56th, ..., 64th birthdays)
Starting from your 65th birthday until your 84th, you would like to withdraw $50,000 per year (no plans for after that);
The interest rate is 12%.
1) How much should you deposit in each of the initial years in order to fully fund the withdrawals?
2). Your answer to Part 1 depends on your starting age. Use Data Table to examine how the amount you need to contribute will change as your starting age changes. Please vary the starting age from 45 to 55 in increments of 1 year
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