Question

Assume that you are 30 years old today, and that you are planning on retiring at age 65. Because your current salary is $45,000 and You expect your salary to increase at a rate of 5% per year as long as you work. To Save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year’s salary. Likewise, you expect the deposit 8% Of your salary each year until you reach the age of 66. At retirement (65), you will begin withdrawing equal annual payment to pay for your living expenses during retirement with the first withdrawal on your 66th birthday. If you expect to die one day after your 100th birthday ( your last withdrawal will be on your 100th Birthday) and If the annual rate of return is 7%, then how much money will you have to Spend in each of your Golden years of retirement?

Answer #1

**How much money will you have to Spend in each of your
Golden years of retirement = $82,213**

**Workings:**

Assume that you are 30 years old today, and that you are
planning on retirement at age 65. Your current salary is $40,000
and you expect your salary to increase at a rate of 4% per year as
long as you work. To save for your retirement, you plan on making
annual contributions to a retirement account. Your first
contribution will be made on your 31st birthday and will be 9% of
this year's salary. Likewise, you expect to deposit...

Assume that you are 24 years old today, and that you are
planning on retiring at age 65. Your salary is expected to increase
at a rate of 5% per year as long as you work. To save for your
retirement, you plan on making annual contributions to a retirement
account. Your first contribution will be made on your
25th birthday and will be 10% of your salary of $50,000
at that time. You plan to put aside 10% of...

Assume that you are 30 years old today, and that you are
planning on retirement at age 65. Your current salary is $45,000
and you expect your salary to remain constant as long as you work.
To save for your retirement, you plan on making annual
contributions to a retirement account. Your first contribution will
be made on your 31st birthday and will be 8% of this year's
salary. Likewise, you expect to deposit 8% of your salary each...

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...

You believe you will need $1.75 million to live comfortably
while retired. You are 35 and plan on retiring when you are 65 and
will begin withdrawing funds from your retirement account on your
66th birthday. You expect to need 25 years of retirement
income. Calculate the amount you must invest annually in
real dollars to meet your retirement goal. Assume 7% is the fair
nominal rate and inflation is 3% per year (the real rate is
3.89%).

Assume you are 40 years old and wish to retire at age 65. You
expect to be able to average a 6% annual rate of interest on your
savings over your lifetime (both prior to and after retirement).
You would like to save enough money to provide $8,000 per year
beginning at age 66 in retirement income to supplement other
sources (Social Security, pension plans, etc.) Suppose you decide
to that the extra income needs to be provided for only...

1. Today is your 25th birthday and you have a dream of retiring
on your 65thbirthday. You want to put aside however much is
necessary on your 31st through 65th birthdays (35annual payments)
to have enough to retire. You've estimated that you will live until
you are 90 and you want the first withdrawal to occur on your
66thbirthday, with the last payment occurring on your 90thbirthday.
You think that you will need $175,000 per year to spend during
retirement....

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....

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