Living expenses during retirement

Assignment Help Financial Management

Reference no: EM131530867

After a 42 year career, you hope to accumulate enough savings to be able to withdraw $7,000 per month for 28 years for living expenses during retirement. If you expect your investments to earn an 8.4% APR career and a 4.8% APR during your retirement, how much does your monthly contribution to your retirement account need to be during your career, assuming you start with $10,000 in savings and want to leave $500,000 to your heirs at the end of your life. Solve using a financial calculator (n, I/Y, PV, FV, PMT).

Reference no: EM131530867

Questions Cloud

Stock returns to calculate the standard deviation of returns : Use the following information on states of the economy and stock returns to calculate the standard deviation of returns.

Compute the present worth of the expected value PW : Calculate the expected value of present worth EV(PW). Compute the present worth of the expected value PW(EV).

Living expenses during retirement : After a 42 year career, you hope to accumulate enough savings to be able to withdraw $7,000 per month for 28 years for living expenses during retirement.

Risk retention is not appropriate when : Risk retention is not appropriate when

Living expenses during retirement : After a 42 year career, you hope to accumulate enough savings to be able to withdraw $7,000 per month for 28 years for living expenses during retirement.

Random price movements indicate : Random price movements indicate A. irrational markets B. that prices cannot equal fundamental values C.

Compute thee internal rate of return : Compute the net present value. Compute thee internal rate of return.

Investors regarding the future direction of the market : The possibility of arbitrage arises when A. there is no consensus among investors regarding the future direction of the market,

Risk-averse investor would prefer portfolio : A risk-averse investor would prefer a portfolio using the risk-free asset and A.

User Account

All Pages