You will lead a retirement life from 65 to 90. Number of years in retirement = 25 years
Total capital needed for retirement = $1,875,000 (based on the fact that I will need $75,000 yearly to cover my expenses)
You are now 22 years, the number of years for retirement = 43 years
Present value of money that you will need for retirement = $153,055.54 2. (assume that the interest rate is 6%)
Include assumptions for Social Security. Do NOT just say there will be no Social Security. Get into the Social Security website and figure what your SS would be at retirement. Subtract future Social Security flow from the Future Value needed in first year of retirement.