We would like to know what the pension fund should be to finance our retirement.

A 197-word research paper, formatted in APA 7 (about 1 double-spaced page).

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Type
Research Paper
Length
197 words, 1 page
Style
APA 7

Research PaperAPA 7

We would like to know what the pension fund should be to finance our retirement.

We want to retire in 40 years and we shall need $45000 income per annum during our retirement whic Show more We want to retire in 40 years and we shall need $45000 income per annum during our retirement which will last 35 years. We can save $20000 annually during the first 9 years. We estimate that from year 6 till 10 we shall return to school for a graduate degree which will cost $30000 yearly in actual cash flow and opportunity cost expenses. Afterward during years 20 to 30 our father will need nursing home care for 10 years. He has to give his house and $70000 annually to the nursing home. Furthermore we shall buy a yacht costing $150000 in year 40. Additionally well send our niece to college which will cost $50000 per annum for 4 years starting in year 6 from now. We would like to know what the pension fund should be to finance our retirement. Second what annual savings should we accumulate from years 30 to 40 to be able to fund all the aforementioned expenses and our retirement. We have a discount rate of 10%.**SHOW ALL WORK** Show less

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