They owe any taxes on funds as they withdrew them

Assignment Help Financial Management

Reference no: EM131908787

Jay is 27 and Nicky is 26. Although they are still young, they wish to plan for their retirement together when Jay is 65. By investing mostly in index funds, they hope to obtain a return on their retirement investments of 10%, which the market has done on average over the last 80 plus years.

a. If they save $4,600 at the end of each year in a Roth IRA for each of them from now until Jay retires, how much will they have in their Roth IRA’s alone for their golden years?

b. Would they owe any taxes on the funds as they withdrew them (Under current tax laws)?

Reference no: EM131908787

Questions Cloud

Monthly payment amortized mortgage : you have arranged to finance the remaining 130000 with a 30 year monthly payment amortized mortgage at a 6% nominal annual interest rate,

What is the effective interest rate on the loan : The loan called for a compensating balance of 13 percent. What is the effective interest rate on the loan?

Dictate process and judgment for determining fair value : Specific rules dictate the process and judgment for determining fair value. how should the valuation be calculated?

Calculate the value at the end of investment : Calculate the value at the end of 10 years of James’s investment in today’s dollars.

They owe any taxes on funds as they withdrew them : Would they owe any taxes on the funds as they withdrew them (Under current tax laws)?

Why reward-to-risk ratio must be equal for all securities : Explain why the reward-to-risk ratio must be equal for all securities if the financial markets are efficient (law of one price).

Present value of annuity-determine present value : Present Value of an Annuity Determine the present value of $200,000 to be received at the end of each of four years,

How much should you be prepared to pay for stock : If you require a return of 8% on your investment, how much should you be prepared to pay for the stock?

The contract purchaser for the delivery : What will be your cash flow tomorrow for this contract? What amount will you receive from the contract purchaser for the delivery?

User Account

All Pages