Question

You want to plan your retirement. Your assumption is that you will work for 35 years and after that need $300,000 annually for 30 years starting a year after you retire. In order to fund your retirement plan you want to invest the same amount at the end of each year (including the year 35) starting one year from now. How much would you have to invest each year over your working career? (Assumption with a 4% annual return to the investment). What function would you use in excel?

Answer 1

Amount required by retirement is $5,187,610

Hence, Each annual saving is $70,433.85