Reference no: EM133000244

1) Wolfe turned 78 years old on February 5th this year. He is meeting with his financial planner today to discuss his withdrawal from his LIF. The current balance of his LIF is $365,500 and on January 1st of this year is was valued at $349,869. What is maximum amount that Wolfe can withdraw from his LIF this year? The required rates are listed by age below. Round your answer to the nearest dollar.

Age Percentage
76 7.884
77 8.4316
78 9.0657
79 9.8154

2) Walter is a member of his defined contribution pension plan. He has pensionable earnings of $64,592 per year. Walter contributes 5% of his pensionaable earnings to the DCPP each year and his employer matches his contribuitons. The current value in his DCPP is $542,257 and he earns a nominal rate of return of 6%. He plans on working and contributing to the DCPP for the next 10 years. The current rate of inflation is 2%. What will the value of his DCPP at the time he retires in 10 years?

Round your answer to the nearest dollar.

3)Carolyn and Jim are planning on retiring next year when they turn 65. They estimate that they will need $85,175 per year when they retire to cover their expenses, travel and taxes. They will need this income each year until they die at age 95. They are currently earning a rate of return of 5% on their investments and the rate of inflation is 2%. What amount of money will they need when they retire next year to fund their retirement?

Hint: Round your answer to the nearest dollar.