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Withdraw an initial annual amount

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Reference no: EM131693689

1. According to the 4% rule, what the size of your investment portfolio needs to be in order for you to withdraw an initial annual amount of $250K? Show your work.

2. Referring to part c, what will be your 4th annual withdrawal amount if the inflation rate during the 3 years since your initial withdrawal averaged 2.5% per year? Show your work.

Reference no: EM131693689

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