Question

If you wanted an annual income of $160,000 a year how much should you have saved assuming a 4% withdrawal rate?

Answer 1

To achieve an annual income of $160,000 with a 4% withdrawal rate, you should have saved $4,000,000.

Step-by-step explanation:

To calculate how much you should have saved to have an annual income of $160,000 with a 4% withdrawal rate, you can use the formula:

Savings = Annual Income / Withdrawal Rate

So in this case:

Savings = $160,000 / 0.04 = $4,000,000

Therefore, you should have saved $4,000,000 to achieve an annual income of $160,000 with a 4% withdrawal rate.