Question 1 : Retirement Planning You just turned 2 5 and got your first job as a
Fantastic news! We've Found the answer you've been seeking!
Question:
Question : Retirement Planning
You just turned and got your first job as a financial advisor after graduation. Your starting salary
is $ Assume you will receive salary at the end of each year ie first payment when you
turn You expect your salary to increase, on average, by per year for years, then per
year for the remainder of your career.
You expect to retire when you turn and live until You plan to spend $ per year in
your retirement in todays dollars. Assume nominal interest rate is Inflation is estimated to be
per year, on average. How much do you have to save per year to meet your retirement goals?
Not all information is relevant in solving the problem.
A timeline is provided in the excel to help you see the relation between the cashflows.
Do not discountcompound real dollars with nominal rates, or nominal dollars with real
rates.
Posted Date: