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So I am 28 now and would like ideally to have the option of retiring at 50 (even though I suspect after running through the numbers it will be 60 ).

I can put away roughly 10k per year into retirement. I want to invest into growth dividend stocks. I want around 2500 each month in dividend income.

Soooo....

+ Age to retirement: 22 years

+ Income required in todays money: 2500

+ Expected dividend yield: 4%

+ Expected dividend growth: 4%

So what I first did was to figure out what $2,500 might look like in the future. Using the future value calculation it works out to $5924. This is what i need per month, in 22 years time.

So that is $71,088 per year in future value. At 2,500 per month current value, I don't see any tax when receiving dividends, using taxtips.ca calculator, so I assume this will be the same 22 years in the future. Hopefully.

71,088 is the expected rate of 4% of a lump sum invested in dividend yielding stocks. Therefore the original sum should be $1,777,200. (71088/0.04)

Now my main question is, what forumula do I use to figure out how much I have to save per month to achieve this? I want something that I can plug in, dividend growth, dividend yield, monthly or yearly contributions, and the final original sum.

I looked at http://en.wikipedia.org/wiki/Time_value_of_money#Future_value_of_a_growing_annuity the future value of a growing annuity, however it doesn't seem to take into account the extra yearly contributions i want to make.

Any help would be greatly appreciated