Planning for retirement income

Assignment Help Finance Basics

Reference no: EM13826887

Problem:

John Adams Plans to retire at the age of 62. He wants an annual income of $50000 per year. John is currently is currently 47 years of age. How much does he share to place at the end of each year into a retirement account earning 15% per year in order to have an adequate retirement nest egg at age 62? He believes that he will live to be 87 and plans to earn 12% during retirement. He will draw money at beginning of each year.

Additional Information:

Basically this question belongs to Finance as well as it is about a condition where a person plans to retire by the age of 62. He wants to earn annual income of $50000 per year after retirement. Right now, the person is 47 years old and question is how much does the person needs to save for his retirement has been computed.

Reference no: EM13826887

Questions Cloud

Distinguish between change accounting estimate and principle : On December 31, 2010, before the books were closed, the management and accountants of Baker Inc made the following determinations about 2 of its depreciable assets: Prepare all necessary journal entries in 2010 for the above determinations. Distingui..

Interests of owners and managers : Explain how incentives and compensation contracts can effectively align the interests of owners and managers in the chosen organization. Discuss how accounting can play a role in these schemes.

Determine the rate implicit in the lease : Truck Leasing Company (TLC) buys trucks for leasing to various delivery companies. On April 1, 2010, TLC leases a truck to Showman Delivery Company. The cost of the truck of $289,875 and its fair value were the same. Determine the rate implicit in th..

Write an essay about two religious traditions : You need to write an essay about two religious traditions of your choice

Planning for retirement income : John Adams Plans to retire at the age of 62. He wants an annual income of $50000 per year. John is currently is currently 47 years of age. How much does he share to place at the end of each year into a retirement account earning 15% per year in or..

Divided in the ratio of original capital investment : Nicole Murphy and Ashley Drake formed a partnership, investing $270,000 and $90,000, respectively. Determine their participation in the year's net income of $126,000, under each of the following independent assumptions. No agreement concerning divisi..

Issues and problems in sales management : Issues and Problems in Sales Management

Amount of revenue to be recognized on transaction : On June 1, 2014, Johnson & Sons sold equipment to James Landscaping Services. In exchange for a zero-interest bearing note with a face value of $55,000, with payment due in 12 months.The fair value of the equipment on the date of sale was $50,000.The..

How much of each good will max demand : The question is about economics and it discuss how much of each good will Max demand? A fat-tax of $2 per liter is placed on ice-cream so that it now costs Max $4 per liter.

User Account

All Pages