You have just started you new job and now you need to think…
You have just started you new job and now you need to think about retirement. You are planning on retiring at 65 and you are currently 25 years old. Your current salary is $4000 per month. You plan on putting 5% of that salary into your 401k each month. You can figure on an average annual return of 10% for your invested money in your 401k over the time invested compounded monthly. If you continue contributing that same dollar amount each moth until you retire, how much will you have in your 401k at retirement? Don’t worry about the taxes for this problem.