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You are 26 years old and decide to start saving for your retirement. You plan to save $ 5,500 at the end of each year​ (so the first deposit will be one year from​ now), and will make the last deposit when you retire at age 70. Suppose you earn 5 % per year on your retirement savings.

b. How much will you have saved if you wait until age 37 to start saving​ (again, with your first deposit at the end of the​ year)? The amount that you will have accumulated for retirement is ​?

​

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Nestor Rutherford
Nestor RutherfordLv2
28 Sep 2019

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You are 26 years old and decide to start saving for your retirement. You plan to save $ 5,500 at the end of each year​ (so the first deposit will be one year from​ now), and will make the last deposit when you retire at age 70. Suppose you earn 5 % per year on your retirement savings.

b. How much will you have saved if you wait until age 37 to start saving​ (again, with your first deposit at the end of the​ year)? The amount that you will have accumulated for retirement is ​?

​

You plan on retiring in 29 years. To support your retirement, you want to be able to make 32 annual withdrawals of $120,000 each year, with the first withdrawal on the day you retire. Assuming you can earn 6.5% on your retirement account:

A) How large of a deposit do you have to make today to be able to achieve your retirement goal?

B) If you decide to save for your retirement by making annual deposits instead of a lump sum today, how much should your annual deposits be, if your first deposit is made at the end of the year and your last deposit one year before you retire (end of year 28)

C) Calculate monthly deposit for 28 years, Use PV not FV for monthly.

You are 41 years old today and want to plan for retirement at age 65. You want to set aside an equal amount every year from now to retirement. You expect to live to age 87 and want to withdraw a fixed amount each year during retirement that at age 65 will have the same purchasing power as $99,349 has today. You plan on withdrawing the money starting the day you retire. You have not saved any money for retirement. Inflation is assumed to be 4.0% in the future. You expect to earn an 8.5% return on your investments in the future. How much do you need to save each year until retirement to meet your goal?

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