Planning to have a comfortable life

You are planning to have a comfortable life after your retirement, and you want to start saving immediately. Please pick a Target amount, a dollar amount in millions (E.g.: $1M, $1.4M, $2M, etc.), to reach when you are 67 years old. You are planning to deposit a Lump Sum on an IRA account by the end of this month. Based on your own age, calculate the lump sum you must deposit by the end of the month to collect the Target Fund by age 67.

Consider Daily Compounding and the Rate of Return (interest Rate) as 14%. Part 2: You need to set up a plan to withdraw money after your retirement, so you have enough money to live comfortably as long as you live. Create an Excel spreadsheet that maps out your annual withdrawals from the retirement account. Assume A 5% starting withdrawal rate that increases with inflation. Assume an inflation rate of 3% and a rate of return on your investment of 7%. You must answer following questions:

1. How long your Money will last? 2. How much money left in the account after 25 years, if you decide to increase the withdrawal rate to 8%.

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