Determine the average number of years

Reference no: EM132725885

Your team works at a financial advisory firm and is asked to work with a client, Ms Christie, who has retired and has 400K in liquid assets.

To maintain a semblance of her prior lifestyle she needs to draw down 50K per year to complement social security and other pension payments.

Problem a) Based on actual data (use the random function to select different starting years), determine the average number of years she can continue to draw down 50K before she runs out of money.

Problem b) Second, since your client understands distribution (she took this course) and comes from a family of septagenarians, she wants to know how much she can draw down if she expects to live to 78. She is 65 now.

Problem c) finally, any other advice you would like to offer

Reference no: EM132725885

Questions Cloud

Headquarters and special salmon fishing boats : What benefits can you see from data communications linkages between headquarters and Special Salmon fishing boats?

Customer oriented market positioning statement : First of all, you have to choose a new product to produce and introduce to the marketplace. Then you will describe that through introducing your new product

What is the firm level of current liabilities : Ace Industries has current assets equal to $3 million. The company's current ratio is 1.5, its quick ratio is 1.0. What is firm's level of current liabilities

What is globalization and does it impact business : What is globalization and does it impact business today? Select an industry that you are interested in pursuing a career in.

Determine the average number of years : Your team works at a financial advisory firm, Determine the average number of years she can continue to draw down 50K before she runs out of money.

Explain the revenue model of an online marketplace ebay : Explain the Revenue model of an online marketplace eBay

What is the firm equity multiplier : A return on equity equal to 20%. What is the company's total assets turnover? What is the firm's equity multiplier

Overall knowledge management process : Discovering and curating new organizational knowledge is part of the overall knowledge management process.

Types of productivity software have you used in business : What types of productivity software have you used in business, school, and personal settings? Think beyond the software that was addressed in this module

User Account

All Pages