How much would he need to contribute to have dollar 5000000

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Reference no: EM131128915

A client needs assistance with retirement planning.

Here are the facts:

• The client, Dave, is 21 years old. He wants to retire at 65.

• Dave has disposable income of $2,000 per month.

• The IRA Dave has chosen has an average annual return of 8%.

If Dave contributes half of his disposable income to the account, what will it be worth at 65? How much would he need to contribute to have $5,000,000 at 65?

Reference no: EM131128915

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