We want to retire in 40 years, and we shall need $45,000 income per annum during our retirements which will last 35 years. We can save $20,000 annually during the first 9 years. We estimate that from year 6 till 10 we shall return to school for a graduate degree, which will cost $30,000 yearly in actual cash flow and opportunity cost expenses. Afterward, during years 20 to 30, our father will need nursing home care for 10 years. He has to give his house and $70,000 annually to the nursing home. Furthermore, we shall buy a yacht costing $150,000 in year 40. Additionally, we’ll send our niece to college which will cost $50,000 per annum for 4 years starting in year 6 from now. We would like to know what the pension fund should be to finance our retirement. Second, what annual savings should we accumulate from years 30 to 40 to be able to fund all the aforementioned expenses and our retirement? We have a discount rate of 10%. SHOW ALL WORK