Retiring early. Over your future investing & retired life, assume you earn 8% [after expenses this time]. You have $10,000 in your Roth IRA. You save an additional $5,500 per year until retirement, with the amount growing with inflation. You anticipate dying 70 years from now.
a. Assume you will retire in 45 years. How long is retirement? How much can you spend each year in retirement?
b. Assume you will retire in 38 years. How long is retirement? How much can you spend each year in retirement?
c. How big a % decrease is this?