Planning to save for retirement-withdrawal period

Assignment Help Financial Management

Reference no: EM13848479

You are planning to save for retirement over the next 35 years. To do this, you will invest $900 per month in a stock account and $500 per month in a bond account. The return of the stock account is expected to be 11 percent, and the bond account will pay 7 percent. When you retire, you will combine your money into an account with a 8 percent return.

How much can you withdraw each month from your account assuming a 30-year withdrawal period?

Reference no: EM13848479

Questions Cloud

What is statistical significance : What is statistical significance? If we randomly assign subjects to two groups we would expect there to be some difference in the groups just by chance. If a difference is statistically significant then it is large enough that we would not expec..

Explore the possible effects of creativity : A brief description of the elements of creativity and a discussion of how logical and creative problem solving are applied to generalized real-world situations

About the short selling : You are bearish on GE because of the global economic slowdown and expect a sharp drop in its share price. So you short 1,000 shares of GE at $20 per share. If the initial margin requirement is 55%, how much additional collateral do you need to post? ..

About the margin purchase : You are bullish on GE and expect a rise in its share price in one year. Since you have only $10,000 available, you want to get a margin loan. The annual interest rate on margin loan is 4% and your broker requires a maintenance margin of 35%. If you b..

Planning to save for retirement-withdrawal period : You are planning to save for retirement over the next 35 years. To do this, you will invest $900 per month in a stock account and $500 per month in a bond account. The return of the stock account is expected to be 11 percent, and the bond account wil..

Construct a commutated dc motor to drive a load : Construct a commutated DC motor to drive a load, simulated by a generator placed on the output shaft of your motor. You may use any readily available materials - characteristic for the different field densities created by the different permanent ma..

Publicly traded firm-describe what sources of capital : Pick any publicly traded firm and describe what sources of capital that firm uses to finance its operations. Describe how much capital was used in each of the various sources of capital. What sort of business activity was financed by these sources of..

What does this sequence of statements print : What does this sequence of statements print? String msg = "The number of characters in newCar is"; String newCar = "GMC";

Comment on the changes in the variables scores : Comment on the changes in the variables scores. The correlation coefficient (r) and the coefficient of determination (r2) found in the Model Summary indicate the strength of the linear trend between the variables.

User Account

All Pages