Plan for retirement, Both men will retire next year and

Plan for retirement

Reference no: EM1343869

Brothers, Mark and Mike Lalla want to plan for their retirement and need your advice.

Mark plans to travel extensively in the first 5 years of his retirement and will need $450,000 each year to do so. After that he will be able to live on $100,000 per year. Mark does not know how long he will live so once started, he needs to be able to withdraw the $100,000 each year forever.

Mike plans on having some income from a part time job in the first 5 years of his retirement so will only need $50,000 per year. He then plans on travelling lavishly for the next 6 years and will need $750,000 per year. He figures he will not live past that point so will not need any more funds.

Both men will retire next year and thus will need the first cash flow from his retirement fund at that time. If both can earn an 8% rate of return, calculate how much each brother will need today to realize his retirement dream.

Reference no: EM1343869

Questions Cloud

Describe why this does not represent a violation of the law : Describe why this does not represent a violation of the law of demand. Which of the subsequent best explains illustrate what a forward contract.

Good meetings in software development life cycle : Provide three words or phrases that explain why "good meetings" are important during the Software Development Life Cycle?

Expected return on a portfolio : Determine the expected return on a portfolio? How can the expected return on a portfolio be manipulated to minimize the risk on that portfolio?

Fraud detection procedures in acquisition : Discuss the purpose and give examples of specific fraud detection procedures in acquisition and expenditure cycle.

Plan for retirement : Both men will retire next year and thus will need the first cash flow from his retirement fund at that time. If both can earn an 8% rate of return, evaluate how much each brother will need today to realize his retirement dream.

Illustrate what will take place to provide as a result : If thousands of consumers begin buying MP3 players, illustrate what will take place to provide as a result.

Success rate of corporate combinations : Conduct Internet research on success rate of corporate combinations over the past 20 years. Describe your findings.

Gdp per person have to double to reach the united states : How many times would Mexico's 2005 real GDP per person have to double to reach the United States' 2005 real GDP per person.

Statement to read variables of type double : Suppose two variables p1 and p2 of type POINT, with two fields, x and y, both of type double, have been declared. Write a statement that reads values for p1 and p2 in that order.

User Account

All Pages