After some calculations, you realize that your inflation - adjusted retirement income shortfall is $44, 244 per year. You anticipate that once you retire, you will be retired for 36 years. How much at a minimum should you have saved at the time of your retirement, if you estimate that your 60/40 equity/debt retirement portfolio will have a real (net of inflation) return of 5.29% on average? For simplicity, assume that once you retire you will be withdrawing the necessary amount from your portfolio at the end of each year.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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After some calculations, you realize that your inflation -
adjusted retirement income shortfall is $44, 244 per
year. You anticipate that once you retire, you will be
retired for 36 years. How much at a minimum should
you have saved at the time of your retirement, if you
estimate that your 60/40 equity/debt retirement
portfolio will have a real (net of inflation) return of
5.29% on average? For simplicity, assume that once you
retire you will be withdrawing the necessary amount
from your portfolio at the end of each year.
Transcribed Image Text:After some calculations, you realize that your inflation - adjusted retirement income shortfall is $44, 244 per year. You anticipate that once you retire, you will be retired for 36 years. How much at a minimum should you have saved at the time of your retirement, if you estimate that your 60/40 equity/debt retirement portfolio will have a real (net of inflation) return of 5.29% on average? For simplicity, assume that once you retire you will be withdrawing the necessary amount from your portfolio at the end of each year.
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