You are still in school and would like to visualize how you will save for your retirement. You can invest in stock funds which are expected to return 8.5% per year in nominal terms and bond funds which return 3.5% per year in nominal terms. Inflation is expected to be 2.25% per year over your life.

Please devise a plan for yourself that works for you for your savings and retirement. Please include the following information

(1) what lifestyle do you want in retirement (how much money do you want to withdraw per year and is this in real or nominal terms),

(2) how many years do you want to live in retirement,

(3) what do you want to leave for others when you pass away,

(4) how many years do you want to save before retiring,

(5) will you make deposits in real or nominal terms (and will your deposits be constant or growing in those terms),

(6) how much money, if any, will you have to begin savings before making yearly deposits and

(7) in which funds will choose to invest your money. Please calculate what your yearly deposit will need to be for your desired life.

For this to be most useful, please consider what you want, what it will take to achieve your goals, and how reasonable these are for you.