You are now 20 years old and hope to save $500,000 for retirement at age 65. you are very unsure about the outlook for investment returns. if you assume no earnings on your investments, how much will you have to save each year?
There are 45 years remaining to save $500,000 dollars at age 65. Dividing $500,000 by 45 is $11,111, which is the amount you will have to save each year.
