Plan for retirement, You are trying to plan for retirement

Plan for retirement

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Reference no: EM131447622

You are trying to plan for retirement in 10 years, and currently you have $350,000 in savings accoung and $600,000 in stocks. In addition you have plans on adding to your savings by depositing $10,000 per year in your savings account at the end of each of the next five years and then $15,000 per year at the end of each year for the final five years until retirement. Assume your savings account returns 3.5 percent compounded annually while your investment in stock returns 10.5 percent compounded annually, how much will you have at the end of 10 years. If you expect to live for 20 years after you retire, and at retirement you deposit all of your savings in a bank account paying 3.5 percent, how much can you withdraw each year after retirement to end up with a zero balance at the end of 20 years. Please specify total value (10 years) in dollars. Please also specify the withdrawal amount. Please show detail to understand.

Reference no: EM131447622

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