Learn Finance. 💹
At least the basics.
Whether you use it for your retirement, financial independence or investment plans, you are required to know the basics of finance. 💰
Up for a quick test ⬇️
-You plan to retire within 20 years from now.
-You need to cover first 5 years of your retirement through your own savings.
-You think that during these first 5 years of your retirement, your expenses will run $200,000 per year.
-You have found an investment vehicle that will help you earn 9% annually on your savings throughout the following decades.
Question:
How much money should you save each year on average, i.e. in terms of equal amounts per year, until your retirement so that you will solely rely on these savings without running out of money throughout the first 5 years of your retirement?