You are 35 years old today and are considering your retirement needs. You expect to retire at age 65 (in 30 years) and you plan to live to 99. You want to buy a house costing 300,000 on your 65th birthday and your living expenses will be 30,000 a year after that (for 35 years), assume an annual interest rate of 8%, annual compounding:
How much will you need to have saved by your retirement date to be able to afford this?
Alternatively, suppose you already have 50,000 in savings today. If you can invest at 8% a year, how much would you need to save at the end of each year for the next 30 years to be able to afford this retirement plan?