Question

You want to plan your retirement. Your assumption is that you will work for 35 years...

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?

Homework Answers

Answer #1

Amount required by retirement is $5,187,610

Hence, Each annual saving is $70,433.85

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You plan to retire in year 20 Your retirement will last 25 years. You want to...
You plan to retire in year 20 Your retirement will last 25 years. You want to have $65,000 each year of your retirement. How much would you have to invest each year, starting in one year, for 15 years , to exactly pay for your retirement ,if your investments earn 6.00% APR (compounded annually)?
You are 35 years old today and want to plan for retirement at age 65. You...
You are 35 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 85 and want to withdraw a fixed amount each year during retirement that at age 65 will have the same purchasing power as $83,697 has today. You plan on withdrawing the money starting the day you retire. You have not saved any money for retirement....
. You are 35 years old today and are considering your retirement needs. You expect to...
. You are 35 years old today and are considering your retirement needs. You expect to retire at age 65 and your actuarial tables suggest that you will live to be 100. You want to move to the Bahamas when you retire. You estimate that it will cost you $ 300,000 to make the move (on your 65th birthday) and that your living expenses will be $30,000 a year (starting at the end of year 66 and continuing through the...
you plan to retire 35 years from today. You want to invest the same amount each...
you plan to retire 35 years from today. You want to invest the same amount each year starting one year from now so you can withdraw $50000 each year during your retirement. You expect to live independently for 25 years following your retirement. You also need a lump sum of 350000 in 60 years to pay for permanent nursing care until you die. You earn 10% per year. You intend to make your first withdrawal one year after retiring. How...
You and your wife are making plans for retirement. You plan on living 25 years after...
You and your wife are making plans for retirement. You plan on living 25 years after you retire and would like to have $95,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 15% annually. Do not round intermediate calculations. Round your answers to the nearest cent. What amount do you need in your retirement account the day you retire? $ Assume that your...
You turn 35 today, and you plan to save $2,000 each month for retirement, with the...
You turn 35 today, and you plan to save $2,000 each month for retirement, with the first deposit made at the end of this month. You plan to retire 30 years from today, when you turn 65, but you're not sure how long you can expect to live after retirement, so you want the payments to go on forever. Under these assumptions, how much can you spend each month after you retire? Your first withdrawal will be made at the...
You plan to retire in 28 years. At the point of retirement, you want to be...
You plan to retire in 28 years. At the point of retirement, you want to be able to withdraw 25,682 at the end of each year forever. Assume that you earn a 7.1% rate of return prior to retirement and an 5.69% rate of return after retirement. If you do not want to make any further contributions to your retirement fund, how much do you need today? Round answer to the nearest dollar.
You are 43 years old today and want to plan for retirement at age 65. You...
You are 43 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 95 and want to withdraw a fixed amount each year during retirement that at age 65 will have the same purchasing power as $98,093 has today. You plan on withdrawing the money starting the day you retire. You have not saved any money for retirement....
You are 44 years old today and want to plan for retirement at age 65. You...
You are 44 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 96 and want to withdraw a fixed amount each year during retirement that at age 65 will have the same purchasing power as $94,725 has today. You plan on withdrawing the money starting the day you retire. You have not saved any money for retirement....
You are planning to work for the next 35 years (years 1 – 35) and expect...
You are planning to work for the next 35 years (years 1 – 35) and expect to live in retirement for 40 years after you retire (years 36-75). You believe that you will need $300,000 per year during your retirement. How much will you need to save each year for the 35 years you are working to meet this goal? Assume that the interest rate is 6%.