A client needs assistance with retirement planning.
Here are the facts:
• The client, Dave, is 21 years old. He wants to retire at 65.
• Dave has disposable income of $2,000 per month.
• The IRA Dave has chosen has an average annual return of 8%.
If Dave contributes half of his disposable income to the account, what will it be worth at 65? How much would he need to contribute to have $5,000,000 at 65?