Question

You are planning to work for the next 35 years (years 1 – 35) and expect to live in retirement for 40 years after you retire (years 36-75). You believe that you will need $300,000 per year during your retirement. How much will you need to save each year for the 35 years you are working to meet this goal? Assume that the interest rate is 6%.

Answer #1

You are planning to save for retirement over the next 35 years.
To do this, you will invest $400 per month in a retirement account.
The rate of return for the retirement account is expected to be 6
percent per year. After you retire, you expect that the account
will have an annual return of 3 percent. How much can you withdraw
each month from your account assuming a 25-year withdrawal period
during retirement?
Calculate and show work.

2. You are planning to save for retirement over the next 35
years. To do this, you will invest $400 per month in a retirement
account. The rate of return for the retirement account is expected
to be 6 percent per year. After you retire, you expect that the
account will have an annual return of 3 percent. How much can you
withdraw each month from your account assuming a 25-year withdrawal
period during retirement?

Over your 40-year working career, you are planning to be
diligent in planning for retirement. You estimate that you will
start working at age 25, retire at 65, and need $100,000/year to
live on in retirement for 25 additional years (until age 90).
8a) Assuming a TVOM of 8%, what do you need to uniformly
annually invest to meet this goal over 40 years?
8b) What about if you wait 20 years and start investment at age
45? How much...

. You are 35 years old today and are considering your retirement
needs. You expect to retire at age 65 and your actuarial tables
suggest that you will live to be 100. You want to move to the
Bahamas when you retire. You estimate that it will cost you $
300,000 to make the move (on your 65th birthday) and that your
living expenses will be $30,000 a year (starting at the end of year
66 and continuing through the...

Over your 40-year working career you are planning to be
diligent in planning for retirement. You estimate that you will
start working at age 25, retire at 65, and need $100000/year to
live on in retirement for 25 additional years (until age
90).
a.Assuming tvom of 8%, what do you need to uniformly
invest to meet this goal over 40years?
b.what about if you wait 20years and start investing at
age 45? How much will you now need to invest...

You are 35 years old today and want to plan for retirement at
age 65. You want to set aside an equal amount every year from now
to retirement. You expect to live to age 85 and want to withdraw a
fixed amount each year during retirement that at age 65 will have
the same purchasing power as $83,697 has today. You plan on
withdrawing the money starting the day you retire. You have not
saved any money for retirement....

You are planning to save for retirement over the next 25 years.
To do this, you will invest $500 per month in a retirement account.
The rate of return for the retirement account is expected to be 9
percent per year. After you retire, you expect that the account
will have an annual return of 6 percent. How much can you withdraw
each month from your account assuming a 20-year withdrawal period
during retirement?

You believe you will need to have saved $500,000 by the time you
retire in 47 years in order to live comfortably. You also believe
that you will inherit $10,000 in 10 years. If the interest rate is
9% per year, how much must you save each year to meet your
retirement goal?

You believe you will need to have saved $500,000 by the time you
retire in 46 years in order to live comfortably. You also believe
that you will inherit $10,000 in 10 years. If the interest rate is
6% per year, how much must you save each year to meet your
retirement goal?

You believe you will need to have saved $500,000 by the time you
retire in 38 years in order to live comfortably. You also believe
that you will inherit $10,000 in 10 years. If the interest rate is
9% per year, how much must you save each year to meet your
retirement goal?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 32 minutes ago

asked 56 minutes ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago

asked 3 hours ago