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Sasha just turned 55 years old today and plans on retiring in 20 years on her...

Sasha just turned 55 years old today and plans on retiring in 20 years on her 75th birthday. She would like to withdraw money from her retirement account on her birthday each year until she dies. She would like to withdraw $80,000 on her 75th birthday, and increase her withdrawals 6% each year through her 89th birthday. She expects to die on her 90th birthday, at which time she would like to leave $300,000 to her granddaughter. Sasha currently has $200,000 savings and expects to earn 8% per year. She plans to save an equal amount of money each year until her retirement. Her first deposit will be made today. How much would she have to save each year to meet her financial objectives? Round your answer to two decimals.

Solutions

Expert Solution

She would have to save $4,423,90 each year to meet her financial objectives.

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jeff jeffy answered 1 year ago
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