You started working at the age of 25 and thanks to the advice of your finance professor you had religiously invested $300 per month into a fund which was earning 10% per year. You are currently 55 years old, and suddenly retirement at the age of 70 seems closer than ever. Based on your lifestyle and spouse’s spending habits you figure that you will probably need an annual income of $150,000 per year, starting at age 70 and continuing until you both turn 85. If you can continue earning 10% per year on invested funds before and after retirement, how much money will you have to save at the end of each month, to reach your retirement goal? Assume that the money you have saved up so far will also be left in the retirement fund.
ANSWER:
Amount that you would need to save at the end of each month is
