Use the following information regarding your retirementplanning:
- You plan to work (and save) for 35 years, then retire (andspend money from your retirement account) for 25 years. After these60 years, you expect that your retirement saving account will have$50,000 left to give to your family.
- You plan to save $4,000 in year 1, and you will increase thisamount by 3% a year
- You want your retirement spending to increase by 2% peryear
- You expect to earn a rate of return of 8% during your workingyears and 4.50% during retirement
To solve this problem, find the amount that you spend your firstyear of retirement.
