You would like to have enough money saved to receive a $65,340 per year after retirement in perpetuity. How much would you need to have saved in your retirement fund to achieve this goal? Assume that the perpetuity payments start on the day of your retirement. The annual interest rate is 9%.

To determine the amount you need saved to achieve a perpetuity payout of $65,340 per year, we can use the formula for the present value of a perpetuity:

\[
PV = \frac{P}{r}
\]

Where:
- $ PV $ is the present value (the amount you need saved).
- $ P $ is the annual payment you want, which is $65,340.
- $ r $ is the interest rate, which is 9%, or 0.09 in decimal form.

Substituting the values:

\[
PV = \frac{65,340}{0.09} = 726,000
\]

So, you would need **$726,000** saved in your retirement fund to receive $65,340 per year in perpetuity at a 9% interest rate.

Would you like more details or have any questions?

Here are 5 related questions:
1. How does the interest rate affect the amount needed for perpetuity?
2. What is the formula for calculating perpetuities with inflation adjustments?
3. How would the calculation change if payments started a year after retirement?
4. What if the desired payout frequency was monthly instead of yearly?
5. How does compounding interest influence perpetuity payments?

**Tip:** When planning for retirement, always factor in inflation to maintain your purchasing power over time.

Discover how much you need to save for retirement to receive $65,340 annually in perpetuity. Use our step-by-step calculation with a 9% interest rate to plan your financial future effectively.

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