You want to retire exactly 40 years from today. Your assumptions for valuation are as follows:

-you choose 10% as your average annual return for investments made prior to retirement

-you choose 6% for all investments held through retirement

-you want your annual income through retirement to be $150,000-inflation is not a consideration

-you want your retirement income payments to last for 20 years after which the account balance will be $0.00.

a. How much do you need saved at the moment you retire in order to achieve your goal of receiving payments of $150,000 per year in retirement?

How much do you have to save each month before retirement in order to have the money on hand to meet your goal of $150,000 per year in retirement?

Answer rating: 100% (QA)

Heres how to calculate the required savings and monthly contributions a Savings needed at retirement ... View the full answer