This is a problem involving the future value of an investment that needs to support withdrawals over time. To solve for $X$, the annual expected return rate, we can set up the equation based on the present value of the withdrawals. This is essentially an annuity problem.

Step-by-step approach:

1. Initial Setup:
   You have an amount of $791,020 today, and in 4 years (at time $t = 4$), you will start withdrawing $112,900 per year for 22 years. The first withdrawal occurs in 5 years.

2. Formula to use:
   The present value $PV$ of an annuity is given by the formula: $PV = C \times \left( 1 - \frac{1}{(1 + X)^n} \right) \div X$ where:

   • $C$ is the annual withdrawal ($112,900),
   • $n$ is the number of years of withdrawals (22 years),
   • $X$ is the unknown annual interest rate,
   • $PV$ is the present value of withdrawals at time $t = 4$.

3. Adjust for Timing:
   Since the withdrawals start in 5 years, the $791,020 today is the present value at $t = 0$. The withdrawals begin at $t = 5$, so the present value of the annuity at $t = 4$ must be discounted back 4 years to today using the interest rate $X$.

The equation we solve is:

$791,020 = 112,900 \times \left( 1 - \frac{1}{(1 + X)^{22}} \right) \div X \times \frac{1}{(1 + X)^4}$

This is a non-linear equation that can be solved numerically for $X$. I'll compute this value now.The expected annual return rate $X$ that will allow you to withdraw $112,900 per year for 22 years from an initial amount of $791,020, starting in 5 years, is approximately 8.59%.

Would you like a detailed explanation of the calculation or have any questions?

Here are five related questions:

1. How does the time value of money affect retirement planning?
2. What happens if the interest rate is lower or higher than expected?
3. How would increasing the withdrawal amount impact the required rate of return?
4. What if you decide to withdraw the money earlier or later?
5. How do inflation and taxes factor into retirement planning?

Tip: Regularly reviewing your retirement plan helps adjust for changes in return rates, inflation, and lifestyle needs.