Question: If you contribution the maximum currently allowable in a 401(k) plan per year at the end of each year (only your contribution, ignoring employer contributions), with the limits increasing by an inflation rate of 3.5% per year, how much will you be able to withdraw per month for 30 years if you retire 35 years from now? Assume you are 25 years old now, the average return on your investments will be 9.5% before retirement, and the average return on your investments will be 6% during retirement.

1. How much will he need by his retirement date to satisfy his goals (assuming he starts withdrawing his retirement income need at the very beginning of retirement and will do so annually?

2. How much would he have to save at the end of each month starting today in order to reach his goal?

3. How would #2 change if he also wants to leave a nest egg at death equivalent to what he started with at retirement?

4. How would #2 change if he also wants to leave a nest egg at death equivalent in purchasing power to what he started with at retirement?