Jane would like to accumulate $1,200,000 in investments for her financial independence in 29 years from now (in real terms). She currently has $70,000 in investments. She expects the real rate of return on her investments over the next 29 years to be 6% per annum (compounded yearly). Assuming that additional investments are made at the end of each year, how much does she need to save and invest (in real terms) each year over the next 29 years to achieve financial independence (to the nearest dollar)?

Lucy would like to receive $70,000 in the first year of her financial independence at age 60. After this first income payment, she is content with her annual income growing at the rate of inflation. She would like this income to be paid for 30 years. She expects inflation to be 2% per year and her investments to achieve nominal returns of 7% per year (compounded yearly). Assuming that all calculations are to be performed in ‘real’ terms, how much does she need to save for financial independence (to the nearest dollar)?

Susan would like to receive $40,000 in the first year of her financial independence at age 60. After this first income payment, she is content with her annual income growing at the rate of 2% per annum below the rate of inflation. She would like this income to be paid indefinitely. She expects inflation to be 3% per year and her investments to achieve nominal returns of 8% per year (compounded yearly). Assuming that all calculations are to be performed in ‘real’ terms, how much does she need to save for financial independence (to the nearest dollar)?

John is aged 60, owns his own home debt-free and has a superannuation account balance that is close to his Transfer Balance Cap. He could easily retire now but has decided to working part-time ‘for fun’ as a golf instructor at his local golf club.

Which of the following variations of FIRE best describes his situation?

What is the full academic reference for the article using correct Harvard, Oxford or APA referencing?

What is the date of your post in the Learning Community Forums in day/month/year format?

You would like to save up for a deposit of $30,000 to buy a home in exactly 8 years. You can invest your savings at an interest rate of 6.5% per year (compounded yearly). Calculate the amount that you must save at the end of each year for the next 8 years to have enough savings for this deposit (to the nearest dollar).

You would like to start saving for an overseas holiday. You can afford to save $1,000 per year from your casual work (with the first amount to be invested in exactly 1 year). You plan to go on the holiday in exactly 4 years. The interest rate on your savings account is expected to be 4.1% per year (compounded yearly). Calculate how much you can expect to spend on your holiday in 4 years (to the nearest dollar). Please do not include dollar signs or commas in your answer.

You would like to buy a new car for $15,000 in exactly 3 years. The interest rate on your savings account is expected to be 4% per year (compounded yearly). You already have enough funds to buy this car now. However, how much would you actually need to set aside now to buy the car in 3 years (to the nearest dollar)?

You have just created a retirement savings account for your newborn baby with an initial investment of $5,000. You expect it to exhibit an average expected return of 6% per year (compounded yearly). How much would you expect to be in that account by the time that child retires at age 67 if no additional investments are made (to the nearest dollar)?