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    Real After-Tax Return Requirement

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    Question:
    Formulate the return objective for John Ribbon, who is planning to retire in 5 years. John's current spending needs of $120,000 per year are currently met by his salary, which is indexed to inflation. John expects to continue his current lifestyle even after his salary stops. Assume that inflation is expected to be 3 percent per year, and John's income and capital gains are taxed at 35%. Upon retirement John will have a retirement account of $1,500,000 after taxes. He plans to invest the proceeds to fund his future spending requirements. What is John's real after-tax return requirement?

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    https://brainmass.com/business/accounting/real-after-tax-return-requirement-304576

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    The solution calculates the real after-tax return requirement.

    $2.19

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