Retirement saving problem.

Question

1.    How old are you now? At what age do you hope to retire? These questions are really about answering: How many years do you have until you retire? I’m 35 years old, and would like to retire at 65, giving me a good 30 years.

2.    Based on how you want to live in retirement and any other sources of retirement income you have available, how much money do you think you will need to draw from this savings account each year during retirement? I believe $30K/year should do the job.

1. You are about to set up a new retirement savings account that earns interest at a 3% annual interest rate (APR). You want to make monthly contributions to that account from now until you retire. The goal is to save enough money so that you will be able to withdraw the money you need each month without depleting your principal (in reality, you will probably deplete your principal gradually). How much money do you need to contribute to the account each month?

Answer 1

I think you need to know how many years you expect to live after you retire.  You will need $30000 Times the number of years you expect to live

Answer 2

I do not wish to give you a flip answer to this problem, which is a very important one, but have you ever considered getting the advice of a professional retirement advisor or financial planner?

 

This is really not the best place to answer a question like this. The tutors are trying to help students with their homework and are not qualified to give this advice.

 

Please do not take up our time with this. It makes us a little uneasy.