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Investments into a more conservative portfolio

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Reference no: EM132484144

Agnes is 40 years old. She wants to know how much she should be saving each year for retirement. Below are the specifics:

  • She wants to retire at 60 and expects to live until she's 90
  • She currently makes $45,000 and expects that to increase each year with inflation (2%). She thinks she will need about 70% of that to live on in retirement.
  • She has $40,000 in an RRSP
  • Her investments are earning a real rate of 7%
  • When she retires she will move her investments into a more conservative portfolio and earn 3% per year.
  • She expects that CPP will be about $15,000 per year.

Given this information, how much will she have saved when she is 60?

Reference no: EM132484144

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