How much can you withdraw each year in retirement

Assignment Help Financial Management

Reference no: EM131304859

You won a contest at a local business that has paid you a single $5,000. At 22, you have decided to invest these funds for 45 years until you retire. During this time your account will earn 13%, compounded annually, every year. As soon as you retire (exactly 45 years from today) you will start withdrawing retirement funds every year for an additional 33 years, but you are investing more conservatively at 8% compounded annually. How much can you withdraw each year in retirement?

Reference no: EM131304859

Questions Cloud

Which layers in the tcp/ip protocol suite need to be changed : Assume that an application-layer protocol is written to use the services of UDP. Can the application-layer protocol uses the services of TCP without change?

Explain how public policy has shaped the development : Explain the governing board's role in these strategic initiatives, determining its responsibility and involvement.Evidence-based management means that operational and strategic decisions are made based upon the evidence that goals and objectives ar..

Describe the competitive advantage of your selected company : Analyze the competitive advantage of your selected company. Evaluate the strategies your selected company uses to create value and gain competitive advantage.

What will monthly payments be during year one : A basic ARM is made for $200,000 at an initial interest rate of 6% for 30 years with an annual reset date. The borrower believes that the interest rate at the beginning of year 2 will increase to 7%. Assuming that a fully amortizing loan is made, wha..

How much can you withdraw each year in retirement : You won a contest at a local business that has paid you a single $5,000. At 22, you have decided to invest these funds for 45 years until you retire. During this time your account will earn 13%, compounded annually, every year. As soon as you retire ..

Price level adjusted mortgage : A price level adjusted mortgage (PLAM) is made with the following terms: Amount=95000, Initial interest rate=4%, Term=30 yrs, Points = 6%. Payments are to be adjusted at the beginning of each year. Assuming inflation is expected to be 6% per year for..

Explain the difference between correlation and regression : Explanation of your regression analysis, why you are using regression, what information is provided by each statistic, and the scatterplot. Explain the difference between correlation and regression.

Write a comment on the post of learning objectives : Write a comment on the post of Learning objectives.In order to plan an educational activity, clear and measurable learning objectives must be set in place to begin. Learning objectives are created using set of action verbs that clearly define what ..

Show the layers of the tcp/ip protocol suite : Using the internet in Figure 1.11 (Chapter 1) in the text, show the layers of the TCP/IP protocol suite and the flow of data when two hosts, one on the west coast and the other on the east coast, exchange messages.

User Account

All Pages