Question

Happy birthday! You are 30 years old today. You want to retire at age 60. You want to have

$1,800,000 at retirement. Realistically, you know that the most that you can save from your 31st birthday until your 50th is $5,500 per year (you only save on your birthdays!). How much do you have to save each year from your 51st to your 60th birthday in order to achieve your retirement goal if you can earn 6% on your savings?

How much do you have to save each year from your 51st to your 60th birthday in order to achieve your retirement goal?

(Round to the nearest cent.)

You are 40 years old and want to retire at age 70. Each year, starting one year from now, you will deposit an equal amount into an investment account that pays 3.5% interest. The last deposit will be on your 70th birthday. On your 70th birthday you will switch the accumulated savings into a safer bank account that pays only 3.8% interest. You will withdraw your annual income of

$120,000 at the end of that year (on your 71st birthday) and each subsequent year until your

90th birthday. On that birthday you want to give $400,000 to your children. How much do you have to save each year to make this retirement plan happen?

How much do you have to save per year during your working years in order to achieve your retirement goal?

(Round to the nearest cent.)

You are trying to calculate how much money you should have at retirement. On your

59th birthday you will retire and immediately make your first withdrawal of

$25,000.00. You plan to make 6 such withdrawals each year. You plan to continue withdrawing at that level and frequency until you are 73 years old. (Assume beginning of period withdrawals with the first withdrawal on your retirement date and no withdrawal on your final birthday.) During retirement your savings will earn only 3.8% per annum. How much do you have to have saved at retirement to fund these planned withdrawals?

How much do you have to have saved at retirement to fund these planned withdrawals?

(Round to the nearest cent.)

Answer #1

1)

You are 40 years old and want to retire at age 60. Each year,
starting one year from now, you will deposit an equal amount into
a savings account that pays 7% interest. The last deposit will be
on your 60th birthday. On your 60th birthday you will switch the
accumulated savings into a safer bank account that pays only 3.5%
interest. You will withdraw your annual income of $120,000 at the
end of that year (on your 61st birthday)...

You are 30 years old today. You want to retire at the age of 60.
You expect to live until age 85. You would like to have a monthly
income of $13,000 per month in retirement. How much do you have to
save per month during your working years in order to achieve your
retirement goal? Assume end of period payments. Assume an annual
interest rate of 3.5% in retirement and 5% during your working
life. How much do you...

You are currently 30 years old. You intend to retire at age
60, and you want to be able to receive a 20-year, $100,000
beginning-of-the-year annuity, with the first payment to be
received on your 60th birthday. You would like to save enough money
over the next 15 years to achieve your objective; that is, you want
to accumulate the necessary funds by your 45th birthday.
A. If you expect your investments to earn 12% per year over
the next...

QUESTION 9
Suppose you plan to retire at age 70, and you want to be able to
withdraw an amount of $83,000 per year on each birthday from age 70
to age 100 (a total of 31 withdrawals). If the account which
contains your savings earns 5.4% per year simple interest, how much
money needs to be in the account by the time you reach your 70th
birthday? (Answer to the nearest dollar.)
Hint: This can be solved as a...

You have a couple who are 31 years old, and want to retire at
the age of 67. Knowing that, the couple has a combined annual
income of $95,000 today.
1. If the couple want to procrastinate their retirement savings
until they reach 35, and if retirement savings will grow at a rate
of 8%, how much would they need to save per year, at the end of
every year, in order to achieve the $2 million target by the...

Suppose you are 30 years old and want to retire at the age of
age 70 and expect to live another 20 years. On the day you retire,
you want to have $1,000,000 in your retirement savings
account.
i. If you invest monthly starting one month from today and your
investment earns 6.0 percent per year, How much money do you need
to invest every month until you retire?
ii. Now you’re retired with $1,000,000 and you have 20 more...

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 43 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 95 and want to withdraw a
fixed amount each year during retirement that at age 65 will have
the same purchasing power as $98,093 has today. You plan on
withdrawing the money starting the day you retire. You have not
saved any money for retirement....

You are 44 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 96 and want to withdraw a
fixed amount each year during retirement that at age 65 will have
the same purchasing power as $94,725 has today. You plan on
withdrawing the money starting the day you retire. You have not
saved any money for retirement....

You just turned 25 years old and want to retire when you turn
65. You expect to withdraw $90,000 per year for 25 years during
retirement, starting first withdrawal one year after your 65th
birthday. You expect to earn a return of 8% on your investments
every year. part 1 How much retirement saving do you need to have
by 65th birthday to support the withdrawals in the next 25 years?
Or the same question can be asked differently, what...

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