Assume that you are presently 30 years old and that you intend to retire when you turn 65.
Assume that you are presently 30 years old and that you intend to retire when you turn 65. You would like to make sure that you have enough funds at the point of retirement to last until you are 95. You estimate that it would take $72,000 per year, in todayAc€?cs dollars to maintain a lifestyle that you desire.
Assume inflation is 2.8% and that you can get a 10% return on your long term investments until you retire. You also estimate that you should be able to get 6% secure returns on your investment after you retire.
How much should you be setting aside yearly between now and your retirement to meet your goals?
What happens if you decide to wait an additional 15 years before starting to save for retirement? How much would you have to set aside?
Assuming that you start saving at 35, what would happen if you decide to retire early?
Please show all work.