In saving for retirement, you decide that to live comfortably you will need to save $2 million by age 65. You are 30 yrs old today and you are starting to save today and every birthday including the 65th birthday. You will put the same amount in a savings account each time. The interest rate is 5%; so how much will you have to set aside each year to ensure $2m in the account on the 65th birthday?
What happens when you increase the expected rate of return?
How do taxes impact your accumulation? Why are marginal tax rates important instead of average?