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Question: I am planning on investing for retirement. I estimate that I will need $100,000 per year for twenty years. I expect to earn 7% while accumulating and 3% in retirement. I am now 25 expecting to retire at 70 and have nothing in the plan yet, and from this year I will be contributing equal annual amounts. .

(a) How big must those contributions be? .

(b) I started on that plan ten years ago and am now 35 and have $80,000 in the plan. If I still want the $100,000 per year, what contributions should I make? .

(d) a market crash causes me to lose 30% of my $80,000. If I go on making the contributions from part (b) and retire two years later, can I still expect at least the $100,000 per year?

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Category:- Basic Finance
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