Question

You are 30 years old today. You want to retire at the age of 60. You expect to live until age 85. You would like to have a monthly income of $13,000 per month in retirement. How much do you have to save per month during your working years in order to achieve your retirement goal? Assume end of period payments. Assume an annual interest rate of 3.5% in retirement and 5% during your working life. How much do you have to save per month during your working years in order to achieve your retirement goal?

Answer #1

Happy birthday! You are 30 years old today. You want to retire
at age 60. You want to have
$1,800,000 at retirement. Realistically, you know that the
most that you can save from your 31st birthday until your 50th is
$5,500 per year (you only save on your birthdays!). How much do
you have to save each year from your 51st to your 60th birthday in
order to achieve your retirement goal if you can earn 6% on your...

Suppose you are 30 years old and want to retire at the age of
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you want to have $1,000,000 in your retirement savings
account.
i. If you invest monthly starting one month from today and your
investment earns 6.0 percent per year, How much money do you need
to invest every month until you retire?
ii. Now you’re retired with $1,000,000 and you have 20 more...

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....

Assume you are now 30 years old. You plan to retire when you are
60 years old. You think you will live until you are 85 years old.
a. If the rate of return during your working years (a.k.a. the
"savings period") is 10% and you plan to save $1,000 per year, how
much will you have saved up by retirement age? b. If the rate of
return during your retirement is 7%, how much will you receive as
an...

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 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 currently 30 years old. You intend to retire at age
60, and you want to be able to receive a 20-year, $100,000
beginning-of-the-year annuity, with the first payment to be
received on your 60th birthday. You would like to save enough money
over the next 15 years to achieve your objective; that is, you want
to accumulate the necessary funds by your 45th birthday.
A. If you expect your investments to earn 12% per year over
the next...

You have a couple who are 31 years old, and want to retire at
the age of 67. Knowing that, the couple has a combined annual
income of $95,000 today.
1. If the couple want to procrastinate their retirement savings
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1.You are 18 today want to retire at age 65.
Starting with the day of your retirement, you would like to have an
annuity initially in the amount of $35,000 per year (but growing at
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You are 45 years old and planning to retire at age 65. You
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year. You want to guarentee that you will withdrawl 15000 per month
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including years in retirement. How much must you save per month
until retirment to fund your plan. HINT: Your retirment withdrawl
will increase every month at the inflation rate of 3%. The...

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