Saving for retirement is important Rather than target a random total collar value to have at retirement, a better approach is to first figure out What you think that you wi spend on an annual basis once you retire and aiso make an educated guess at how long you will live once you rotire. Then save enough to support that stream of expecled payments. Assume that you are going lo work and save for 40 years and anticipate living for 30 additonal years once you ratire. You anticipate that you will spend $125,000 por yoar overy year in retirement. How much will you noed to save each year your 40 years of employment in order to have onouph to support your rotirement spending needs? Assume that the mutual fund where you park youe money will rotum 6.86% per year while you are working and while you are rotired. Assume that imvestments ard withdrawals occur at the end of each year. Your last day of work will be the day of your last investment (year 40) and first withdrawal will be at the end of the next yeat (year 41)