Retirement Worksheet (please do the questions and put the formula on number 3

My salary is 85,000 age 53 retire at 67 expectancy age 80

1.Question one how much should I withdraw to have 70% of my salary

2. When I retire, my goal is to have 375 ,000

3. I am able to withdraw how much and please write the steps of the PMT formula

1. YOUR ESTIMATE/BEST GUESS: I intend to withdraw $_ at the END of each year from my retirement account to support my lifestyle. Input how much you think you need to live comfortably in your retirement years. To help you with your estimate, experts estimate you should plan to have approximately 70% of your ending salary in your retirement years in order to maintain your standard of living. (Assume no pension or Social Security benefits.)

2. When I retire, my goal is to have saved $______375,000 in a retirement account. I believe these funds will be sufficient to maintain my desired lifestyle through my retirement years. Input this figure BEFORE you calculate anything on the Excel template. Just take a guess. What do you think is a reasonable amount to have as your nest egg on the day you retire (age 65 in this example) that would support the annuity withdrawal from the previous question?

3. Based on my total retirement savings from question #2, assuming those funds are invested at 5% compounded annually, I am able to withdraw $_ from my retirement fund each year over the next 13 years. (Show all work here.) Easiest to compute with the financial calculator (solve for PMT).

4. In order to meet your retirement goals (withdrawing an annuity stream for 20 years) from question #1, how much would you need to have in your retirement account at age 65? In other words, based on the amount of the annuity from question #4, the total retirement savings account must have an actual balance of $______________ in the account on the day of retirement at age 65 assuming a rate of 5% compounded annually. This is a present value of annuity calculation. (Show all work here.)

Now lets take a more analytical approach to retirement planning:

INPUT INTO TEMPLATE:

I hope to have $___________________ of retirement savings in the bank by age 53.

I hope to earn $___________________ per year when Im 63.

I hope to earn $___________________ per year when Im 73.

I hope to earn $___________________ per year when Im 80.

If my life expectancy is age 80, my retirement years will total ________.

SHOW WORK IN THE TEMPLATE: Assume I invest 15% of my salary annually based upon the above salaries at a savings rate of 6.5% compounded annually. At retirement age, my nest egg (including the retirement funds I had saved by age 30) would total:

$_______________________ (from Excel template)