Finance retirement question important?
Question Details: Your father intends to retire in 4 years. He expects to live for 12 years after he retires. He curently has $35,000 in his investment account. He projects that he will require $15,000 per year during his retirement years, starting one year after he retires. How much would he have to save in each of the next 4 years so that he will have enough money to fund his retirement? He expects to earn an average annual rate of return of 7% per year. Thanks for any help
Public Comments
- He's screwed, to be honest. That's not even close to enough money to retire on if that is his only savings, the $35,000 is next to irrelevant. If he has social security coming in, he would need to save money out of that, but SS generally isn't enough to do that (save) at all. I don't know if this is a homework question, it sort of sounds like one, or if it is a real life situation, but for real life that is not a good retirement situation at all.
- http://www.gazelleintense.com/pdfs/monthly_retirement_planning.pdf
- There are a lot of tools, which allow you to make that kind of calculations. Check Retirement calculator at http://www.retirement-news.com/retirement-calculator.htm
