About to start work but working is not really your thing

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Reference no: EM131869320

You’re 22 years old and about to start work but working isn’t really your “thing” and you want to retire at the ripe old age of 35. You figure that you’ll live to be 100 because you’re in good health and your grandmother just celebrated her 102nd birthday. You estimate that you’ll need $100,000 of retirement income per year, in 2029 dollars, for every year of retirement. Therefore, the real value of your retirement income will decline annually from the day you retire as you expect annual inflation to be 2.5%. On the day you retire, you’ll receive the first installment of your retirement income which will end when you are 100 years old. You don’t yet have any money saved because you’ve been a student all your life but you expect that you can generate a return on your portfolio of 13% because you’re killing it in BUS1 170. How much must you save over each of the next 12 years (end-of-year deposits) to meet your retirement goal?

Reference no: EM131869320

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