Reference no: EM132683863
You are now 50 years old and plan to retire at age 65. You currently have a stock portfolio worth $150,000, a 401(k) retirement plan worth $250,000, and a money market account worth $50,000. Your stock portfolio is expected to provide annual returns of 12 percent, your 401(k) investment will earn 9.5 percent annually, and the money market account earns 5.25 percent, compounded monthly.
-If you do not save another penny, what will be the total value of your investments when you retire at age 65?
-Assume you plan to invest $12,000 every year in your 401(k) plan for the next 15 years (starting one year from now). How much will your investments be worth when you retire at age 65?
-Assume that you expect to live 25 years after you retire (until age 90). Today, at age 50, you take all of your investments and place them in an account that pays 8 percent. Assuming that you do not take any withdrawals until age 75 what will be available to withdraw at age 75?