Getting serious about retirement planning.

Assignment Help Financial Management
Reference no: EM131998359

Mr. Homer, who turned 36 years old today, is getting serious about retirement planning. He has $135,000 already set aside in his retirement account and plans to add an equal amount in real terms at the end of each of the next 33 years so that he can retire at age 69. His goal is to build a retirement account that will enable him to make 25 annual withdraws with a purchasing power of $100,000 (at today’s prices) on his 70th through 94th birthdays. His retirement account is expected to earn 5.50% per year and the expected inflation rate is 2.50% per year. How much does Mr. Homer need to set aside in real terms at the end of each of the next 33 years to meet his retirement goal?

Round your answer to the nearest whole dollar. 

Reference no: EM131998359

Questions Cloud

Describe the traditional police methods : It was up until the late 1980s, with strong US Supreme Court cases, that the Bill of Rights was only given lip service and traditional police methods.
How would you prepare your staff for an upcoming survey : As the new Manager of the Health Information department, you are informed that the hospital will have a Joint Commission survey within the next several months.
How do you think a healthcare organization should approach : Despite this, many health organizations are delivering services over the web and requiring patients to make appointments and access their records this way.
Compare the experimental and quasi-experimental designs : Compare and contrast the similarities and differences between experimental and quasi-experimental designs.
Getting serious about retirement planning. : Mr. Homer, who turned 36 years old today, is getting serious about retirement planning.
Provide two reasons why amending the us constitution : Provide two reasons why amending the U.S. Constitution would be necessary versus passing a law. Include Marbury v. Madison and U.S. Term Limits
Explain the new invention-research result : Explain the new invention/research result (what is it) and its application in real-life (how it works) accompanied by formulas, graphs and diagrams.
What makes tcp-ip networking so popular : The discussion assignment for this week will be about transmission control protocol/Internet protocol (TCP/IP) networking.
What is a real world example of michael porters : What is a real world example of Michael Porters cost and quality of production (Factor Endowments) that has expanded globally and faced challenges

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd