SOLUTION: I'm 43 yrs. old and I would like to retire at 70 yrs. old. I have 27 yrs. left before I retire. I would like to have $ 2500 monthly for expenses for 30Yrs. I will put 3% toward my

Question 1046724: I'm 43 yrs. old and I would like to retire at 70 yrs. old. I have 27 yrs. left before I retire. I would like to have $ 2500 monthly for expenses for 30Yrs. I will put 3% toward my retirement every month until I retire. What are my monthly payments with this plan? ( Question 2) And suppose I find an account that earns interest at 4% interest instead. How does that change my monthly payments when I plan to retire at age 70.
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
I'm 43 yrs. old and I would like to retire at 70 yrs. old.
I have 27 yrs. left before I retire. I would like to have $ 2500 monthly for expenses for 30Yrs.
Find how much you need for a 2500 a month income for 30 yrs at 3%
You would need about $593,000
Find out the monthly payment to accumulate this amt in 27 yrs at 3%
You would need to pay $1,190 a month for 27 yrs
:
And suppose I find an account that earns interest at 4% interest instead.
How does that change my monthly payments when I plan to retire at age 70.
2500 a month for 30 yrs at 4% requires $530,000
the monthly payment to accumulate this amt in 27 yrs, $911 a month
:
Here is an annuity web site where you can calculate the payout using various rates and time periods: http://www.annuitycalc.org/
:
To calculate your savings goal: http://financialmentor.com/calculator/savings-account-calculator
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