You are trying to decide how much to save for retirement. Assume you plan to save...
You are trying to decide how much to save for retirement. Assume you plan to save $4,000 per year with the first investment made one year from now. You think you can earn 7.0% per year on your investments and you plan to retire in 45 years, immediately after making your last $4,000 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $4,000 per year, you wanted to...
You are trying to decide how much to save for retirement. Assume you plan to save $5,500 per year with the first investment made one year from now. You think you can earn 11.5% per year on your investments and you plan to retire in 34 years, immediately after making your last $5.500 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $5,500 per year, you wanted to...
You are trying to decide how much money you will need at retirement. You expect to retire at age 65. You hope to travel extensively while you are healthy enough. To finance your travels (and cover your basic living expenses) you think you will need income of $241,000 per year (at the end of each year). You will make your first withdrawal on your 66th birthday. You expect to stay healthy enough for travel for the first 19 years after...
6. You are trying to determine how much money you will need at retirement in your retirement "nest egg." You plan to retire on your 60th birthday and immediately take your first withdrawal from your retirement account of $4,583.33. You plan to make 24 such withdrawals each year (i.e., two per month). You plan on doing his until you are 72 years old. Assume beginning of the period withdrawal with the first on your 60th birthday and your final birthday....
Suppose you are exactly 25 years old and you are planning to save for your retirement which will happen in 40 years. You plan to deposit equal amount at the beginning of each month in your retirement account with the first saving made today. Assume the retirement account pays you 6% p.a. compounded monthly. (a) If you would like to have $1,000,000 in your retirement account 40 years later when you are retired, how much will you have to deposit...
You are 25 years old, having just started working. You are considering a retirement plan for a retirement at the age of 65. You want to be able to withdraw $76,000 from your savings account on each birthday for 20 years following your retirement at the age of 65. Your first withdrawal will be on your 66th birthday. To achieve your goal, you intend to make equal annual deposits in a pension scheme which offers 7% interest per year. According...
You are planning to save for retirement over the next 30 years. To save for retirement, you will invest $1,600 per month in a stock account in real dollars and $585 per month in a bond account in real dollars. The effective annual return of the stock account is expected to be 11 percent, and the bond account will earn 7 percent. When you retire, you will combine your money into an account with an effective return of 9 percent....
You are planning to save for retirement over the next 30 years. To save for retirement, you will invest $1,900 per month in a stock account in real dollars and $615 per month in a bond account in real dollars. The effective annual return of the stock account is expected to be 12 percent, and the bond account will earn 7 percent. When you retire, you will combine your money into an account with an effective return of 8 percent....
You are trying to get your retirement savings in order. You plan to retire in 27 years. For retirement, you calculate that you will need $75,000 per year in today’s dollars, and that you will start taking annual withdrawals from the account 27 years from today. To be safe, you assume you will need to make 40 withdrawals (i.e., live 40 years in retirement), and you assume inflation will be 2% per year forever.You plan on contributing a fixed percentage...
You have just turned 40 and you plan to save for retirement. You plan to retire in 20 years. Once you retire you would like to have an income of $80,000 per year for the next 10 years. Determine the amount you must deposit at the beginning of each year to finance your retirement income. Use the following assumptions to determine this annual deposit: All savings compound at a rate of 12% per year. You make the first deposit today...