Phases of the retirement plan

Assignment Help Accounting Basics

Reference no: EM1310422

Kim is evaluating her retirement plan. Suppose she has $500,000 when she retires in an account that earns at an effective annual rate of 9%.

a. If Kim withdraws $75,000 annually, how long will her funds last?

b. To make the funds last 25 years, how much can Kim withdraw annually?

c. Kim is considering a two phase withdrawal where she withdraws $60,000 annually for 10 years, and then $35,000 thereafter (when social security starts). How long will her funds last assuming that the 9% rate of return (EAR) is accurate for both phases of the retirement plan.

Reference no: EM1310422

Questions Cloud

Is it true that an option can never sell for lessthan : is it true that an option can never sell for lessthan you can make by exercising the option

Challenges in delivering products -information over internet : One of the biggest challenges linked with the delivering products and information over Internet is the ease with which the others can infringe on other's rights. Provide some examples of this.

Various macroeconomic factors to determine exchange rates : Describe the various macroeconomic factors which determine exchange rates? What is the justification for existence of International Fisher Effect?

Why is it important to know which type of inflation : Illustrate what are the different types of inflation. Elucidate why is it important to know which type of inflation we may be experiencing.

Phases of the retirement plan : Kim is measuring her retirement plan. Assume she has $500,000 when she retires in an account that earns at an effective annual rate of 9%.

Personality and naturalistic positions in scientific history : In this assignment, you will mainly focus on the debate between personality and naturalistic positions in teh scientific history and how the concept of zeitgeist associates to each of such concepts.

What is the optimal input combination : Now using the information on input prices also MR, Illustrate what is the optimal input combination.

Evaluating a potential bond purchase : Nellie is evaluating a potential bond purchase that the seller purchased 12 years ago for $4,000. The bond matures 8 years from today.

Imagine that the mass of the seesaw is negligible : What will be the equilibrium temperature while a 238 block of copper at 230 is placed in a 133 aluminium calorimeter cup containing 831 of water at 16.0.

User Account

All Pages