Retirement planning question?
Assuming a couple saves the same amount each year for 32 years before retirement, how would I find how much they need to save in dollars each year in order to produce sufficient cash flows after retirement? Additional information: -They will be retired for 18 years (Their assumed year of death) -Inflation is 3% -Return on investment is 8% Is there a formula I can use? This is for a finance class and I am having extreme difficulty figuring this one out. Thanks very much in advance!! I was really just seeing if anyone knew of a formula i can use to plus in the data, not necessarily have you solve it for me. thanks for the responses though ill check out those sites
Public Comments
- Really depends on how much money you NEED vs want when you retire. Try this web site at Vanguard and see if this helps. https://flagship.vanguard.com/VGApp/hnw/planningeducation/retirement/PEdRetInvHowMuchToSaveContent.jsp#early
- Really hard to say "sufficient cash flow" is very vague and will differ greatly from person to person. Fidelity.com has a pretty useful retirement planning tool. You can input different info and see possible outcomes then change things as you go and see how the changes will affect you in 30 years.
