As a follow-on to this question, if you wanted to have a $2.5 million nest egg in 20 years, what would the nest egg value have to be today (assuming no future contributions)?
- 20 years until first withdrawal
- 4.0% annual inflation
- 8.0% annual return
- $2.5 million future balance
Please note: I'm not in school and this isn't a homework question. I'm just trying to learn what formulas are needed for retirement planning.