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
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...
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...
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 $6,000 per year with the first investment made one year from now. You think you can earn 11.0​% per year on your investments and you plan to retire in 28 ​years, immediately after making your last $6,000 investment. a. How much will you have in your retirement account on the day you​ retire? b.​ If, instead of investing $6,000 per​ year, you wanted to...
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 comma 000$5,000 per year with the first investment made one year from now. You think you can earn 7.07.0​% per year on your investments and you plan to retire in   2727 ​years, immediately after making your last $ 5 comma 000$5,000 investment. a. How much will you have in your retirement account on the day you​ retire? b.​ If, instead of investing...
You are 45 years old and planning to retire at age 65. You expect to live...
You are 45 years old and planning to retire at age 65. You expect to live until age 85. Your retirment investment earns 9% per year. You want to guarentee that you will withdrawl 15000 per month during retiremnent. You expect that inflation will be 3% per year including years in retirement. How much must you save per month until retirment to fund your plan. HINT: Your retirment withdrawl will increase every month at the inflation rate of 3%. The...
1. How old are you now? I am 22 years old now. I plan on retiring...
1. How old are you now? I am 22 years old now. I plan on retiring at the age of 65. Based on the assumption that I will live until the age of 90, I will need $75,000 per year. Calculate the present value of the money you will need for retirement. 1. Choose two rates of return you would like to investigate. Chose a lower, conservative number, such as the current 3 year CD rate and chose a higher,...
CASE STUDY (Cheryl Tatano Beck's POSTPARTUM DEPRESSION THEORY) At the tender age of 11 years, Kim...
CASE STUDY (Cheryl Tatano Beck's POSTPARTUM DEPRESSION THEORY) At the tender age of 11 years, Kim was “sold” by her mother to three adult men for an evening of sex and drugs. Kim related that as her mother went out the door, she advised her to “do what they tell you and I’ ll be back in the morning.” Kim was never okay again. Although she did relatively well during the sporadic times she went to school, her life was...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT