Retirement strategy-expected return on the stock fund

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Your retirement strategy is to invest 500 per month in an equity mutual fund and 200 per month in a bond fund. Your retirement date is 30 years from now. The expected return on the stock fund is expected to be 8% and the expected return on the bond fund is expected to be 3%. When you retire, you will combine your money into an account with an expected 5% return. How much can you withdraw each month from your account assuming a 25 year withdrawal period? At the end of the 25 years, the account value will be zero.

Reference no: EM13807336

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