What are the investment options for retirement plans

Assignment Help Finance Basics
Reference no: EM1312576

What are the Investment options for retirement plans

Today is January 1 and an individual is currently 30 years old. She made $93,000 last year and she estimates she will need 75% of her current income in today\'s dollars to live on when she retires. She believes that inflation will average about 3.6 percent per year during her working years. (For simplicity we will ignore inflation during her retirement years). She will retire at age 65 and will begin drawing down her retirement annuity at age 65.

a) How much money will she need to withdraw each year starting at age 65 to have the same purchasing power as today? Round your answer to the nearest penny.

b) She plans on making a total of 20 annual withdrawals after she retires. After she retires she believes she will be able to earn 5.9 percent per year. How much must she have at age 65 in order to make her planned withdrawals? Round your answer to the nearest penny.

c) If she puts her money in a blended stock and bond portfolio now, she figures she can earn 11 percent per year until she retires. How much should she save per year starting right now in order to have the retirement annuity she desires? Round your answer to the nearest dollar.

Reference no: EM1312576

Questions Cloud

The angular acceleration of the pulleys : Determine the angular acceleration of the pulleys and the tension T in the cord supporting the 612 Kg mass when it is released from rest.
Solve the investments and cost volume profit analysis : Objective type questions on investments and cost volume profit analysis and the fixed costs of the Maintenance Department are determined by the number of cases produced by the operating departments during the peak period
Declare of a block on a inclined plane : Block A in Figure is given an initial velocity of 6 m/s up the incline. Declare of a block on a inclined plane.
Objective type questions on foreign exchange assets : Objective type questions on foreign exchange assets and When a foreign subsidiary is not wholly owned by the parent
What are the investment options for retirement plans : What are the Investment options for retirement plans and How much money will she need to withdraw each year starting at age 65
Rate of heat gained by object : n object of mass "m" specific heat "Cp" & surface area "As" is initially at a temperature "To". Rate of Heat gained by Object = Rate of Heat Lost by Gas m, Cp, h, A & Tg are all constants.
Initial speed u with which hiawatha can launch the arrow : Assume that, when Hiawatha aims vertically, his arrow reaches a maximum height of 20 m. Use this fact to find the initial speed u with which Hiawatha can launch the arrow vertically.
Calculate the minimum angle above the horizontal : Calculate the minimum angle above the horizontal at which Hiawatha must aim in order to outrun the arrow.
The energy consumption and area required by the solar cell : The light energy that falls on a square meter of ground over the course of a typical sunny day is about 20 MJ. The average rate of electric energy consumption in one house is 1.0 kW. Find the energy consumption and area required by the solar cell

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd