Question

You are currently 30 years old. You would like to retire at 65 and be able...

You are currently 30 years old. You would like to retire at 65 and be able to withdraw $85,000 for 25 years after the retirement at the beginning of each year. The first withdrawal will occur the day your retire. You have managed to save $50,000 that you will invest in an IRA. In addition to your initial $50,000 investment, how much will you have to deposit into the IRA every year starting one year from now in order to achieve your retirement goal? The IRA is expected to generate 8% (compounded annually) before the retirement and 5% (compounded annually) after the retirement. The last deposit will occur at the same time when the first withdrawal is made

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Happy​ birthday! You are 30 years old today. You want to retire at age 60. You...
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 just turned 25 years old and want to retire when you turn 65. You expect...
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...
You expect to retire in 20 years. After you retire, you want to be able to...
You expect to retire in 20 years. After you retire, you want to be able to withdraw $3,000 from your account each month for 15 years. If your account earns 8% interest compounded monthly, how much will you need to deposit each month until retirement to achieve your retirement goals? (Round to the nearest cent.)
You expect to retire in 25 years. After you retire, you want to be able to...
You expect to retire in 25 years. After you retire, you want to be able to withdraw $4,500 from your account each month for 30 years. If your account earns 9% interest compounded monthly, how much will you need to deposit each month until retirement to achieve your retirement goals? (Round to the nearest cent.)
Assume you are 40 years old and wish to retire at age 65. You expect to...
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...
You just turned 20 years old and want to retire when you turn 65. You expect...
You just turned 20 years old and want to retire when you turn 65. You expect to live for 25 years after retirement and want to withdraw $100,000 per year in retirement, starting on your 65th birthday. You expect to earn a return of 6% on your investments every year. What is the present value (as of your 65th birthday) of the withdrawals you expect to make? How much money should you save each year if you make the first...
You are 30 years old today. You want to retire at the age of 60. You...
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 just turned 20 years old and want to retire when you turn 65. You plan...
You just turned 20 years old and want to retire when you turn 65. You plan to put $3,500 every year into a ROTH IRA, a retirement account from which you can withdraw money after retirement without having to pay any taxes. You expect to earn a return of 4% on your investments every year.   1. How much money can you expect to have at age 65 if you make your first annual deposit now and your last one on...
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 have a couple who are 31 years old, and want to retire at the age...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT