Assume I'm age 35 years old looking to retire at age 65. During retirement, I will withdraw $40,000 each year from my savings account.

1. You are about to set up a new retirement savings account that earns interest at a 3.7% annual interest rate (APR). You want to make monthly contributions to that account from now until you retire. The goal is to save enough money so that you will be able to withdraw the money you need each month without depleting your principal (in reality, you will probably deplete your principal gradually). How much money do you need to contribute to the account each month?

Answer rating: 100% (QA)

To determine how much you need to contribute to the retirement savings account each month you can us... View the full answer