Question

How many years will you need to provide a steady retirement income for yourself based on...

How many years will you need to provide a steady retirement income for yourself based on how long you are likely to live? Don't assume you can work until normal retirement age - your health may not permit that. Plan to retire a few years early to give yourself a safety buffer in case your health deteriorates sooner than planned or in case you need to stay home to care for a loved one. I am likely to live until I am 85

Homework Answers

Answer #1

Health starts determining from age 50 on average. Assuming a person can live on an average till 85 years. So retiring at 55 years might be considered safe. So the steady retirement income planned should be for 85-55 = 30 years.
For attaining 30 years of retirement income
1. One should not invest in risk assets from age 45.
2. Planning less expenditure on housing which constituters 1/3rd if the expenses from an American household will help. This can be minimised by preferring to buy houses at the outskirt which might be cheaper than in a central area.
3. Investing in retirement fund from age 30 can help a lot.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Take control of your life. How much do you need to save for retirement at age...
Take control of your life. How much do you need to save for retirement at age 67 today on a monthly basis. If you started 10 years ago, how much would you have had to save on a monthly basis? How many years until you retire? How many months until you retire? Assume you will earn 6% return on your savings. Assume you will need $500,000 to retire. How much do you need to save monthly to reach this goal?...
You are 35 years old today and want to plan for retirement at age 65. You...
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....
Suppose you are 30 years old and want to retire at the age of age 70...
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...
3) Now you will plan for your retirement. To do this we need to first determine...
3) Now you will plan for your retirement. To do this we need to first determine a couple of values. a. How much will you invest each year? $1,000 a year is what i will invest. State what you will use for P, r, and n to earn credit. ( The typical example of a retirement investment is an I.R.A., an Individual Retirement Account, although other options are available. However, for this example, we will assume that you are investing...
You are 43 years old today and want to plan for retirement at age 65. You...
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...
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 are trying to decide how much to save for retirement. Assume you plan to save...
You are trying to decide how much to save for retirement. Assume you plan to save $ 5,500 per year with the first investment made one year from now. You think you can earn 12.0​% per year on your investments and you plan to retire in 38 ​years, immediately after making your last 5,500 investment. a. How much will you have in your retirement account on the day you​ retire? b.​ If, instead of investing $5,500 per​ year, you wanted...
Assume you are now 30 years old. You plan to retire when you are 60 years...
Assume you are now 30 years old. You plan to retire when you are 60 years old. You think you will live until you are 85 years old. a. If the rate of return during your working years (a.k.a. the "savings period") is 10% and you plan to save $1,000 per year, how much will you have saved up by retirement age? b. If the rate of return during your retirement is 7%, how much will you receive as an...
2) You are trying to decide how much to save for retirement. Assume you plan to...
2) You are trying to decide how much to save for retirement. Assume you plan to save $7,500 per year with the first investment made one year from now. You think you can earn 9.0​% per year on your investments and you plan to retire in 39 ​years, immediately after making your last $7,500 investment. a. How much will you have in your retirement account on the day you​ retire? b.​ If, instead of investing $7,500 per​ year, you wanted...
You are trying to decide how much to save for retirement. Assume you plan to save...
You are trying to decide how much to save for retirement. Assume you plan to save $5,000 per year with the first investment made one year from now. You think you can earn 10% per year on your investments and you plan to retire in 43 years, immediately after making your last $5,000 investment. Please show how to solve on Excel. a. How much will you have in your retirement account on the day you retire? b. If, instead of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT