You are 30 years old today. You want to retire at age 60. You want to have 2,700,000 at retirement. Realistically, you know that the most that you can save from you 31st birthday unitl your 50th is 7250 per year (you only save on your birthdays!) How much do you have to save each you from your 51st to you 60th birthday in order to achieve your retirement goal if you can earn 9.5% on your savings?

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Jean KeelingLv2

1 Apr 2018

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Today is your 40th birthday. Your expect to retire at age 65, and your actuarial tables suggest that you will live to be 100. You want to move to Maheshkhali when you retire. You estimate that it will cost you $200,000 to make the move (on your 65th birthday). Starting on your 65th birthday and ending on your 99th birthday, your annual living expenses will be $25,000 a year. You expect to earn an annual return of 7% on your savings.

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You are 41 years old today and want to plan for retirement at age 65. You want to set aside an equal amount every year from now to retirement. You expect to live to age 87 and want to withdraw a fixed amount each year during retirement that at age 65 will have the same purchasing power as $99,349 has today. You plan on withdrawing the money starting the day you retire. You have not saved any money for retirement. Inflation is assumed to be 4.0% in the future. You expect to earn an 8.5% return on your investments in the future. How much do you need to save each year until retirement to meet your goal?

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