At your age (assume 20) you can assume that you will live to be 100. If you graduate at 23 and start to work, you can expect to work for 47 years, until age 70. At that time you will be eligible for full Social Security benefits, which can reasonably be expected to be $3,000 per month, and which will be received monthly for the rest of your life. You can reasonably expect that your retirement savings will earn an average of 8 percent per year throughout the period that you accumulate your retirement funding and during your retirement years. Further assume that you will want to have an annual income of $120,000 throughout your retirement.
At your age (assume 20) you can assume that you will live to be 100. If...
Assume that you don't start saving for retirement until age 40. You now have 15 years to accumulate 2,500,000. How much would you have to save each year to accumulate this total? Assume you invest in the stock market generating a rate of return of 10%
Assume that you don't start saving for retirement until age 40. You now have 15 years to accumulate 2,500,000. How much would you have to save each year to accumulate this total? Assume you invest in the stock market generating a rate of return of 10%
It is your 25th birthday (end of 25 years) and you decide that you want to retire on your 65th birthday (end of 65 years - 40 years later). Your salary is $55,000 per year and you expect your salary to increase by 3% each year for the next 40 years. When you retire, you want your retirement fund to provide an annual payment equal to 80% of your salary at age 65 and to increase by 2% a year...
Given your age (28 years & 11 months), and assume average stock market return is 10% per year; how much per month you should save (In IRA or IRA type, tax defer) in order to accumulate $1,000,000.00 when you get to 67 retirement age?
Your client is 30 years old and wishes to retire at age 60. At the time, your client quashes to have saved $2,000,000. You advise the client to set aside money every year for the next 30 years. This money will be invested in a fund that you believe will average 12% each year for the next 30 years. A) How much will your client need to set aside for each payment into the fund in order to accumulate the...
You are 35 years old You have a non-working spouse (same age) You have one child, age 3 Annual gross income S110,000 Your monthly expenses total S3,500 Monthly debt payments are S400 (counted in the S3,500) Tax-specific Information Adjusted gross income S75,500 Itemized deductions-$15,500 Child care tax credit $500 Federal income tax withheld S6,250 Amount for personal exemptions S12,500 You are exhausted at this point from buying a house, managing your taxes, learning about life insurance and saving for college....but...
10. Assume that you are now 25 years old. You would like to retire at age 65 and have a retirement fund of $5,000,000 at the time of your retirement. You have already $50,000 at age 25 in the retirement account. You expect to earn 7% per year. The amount of money you must set aside each month to reach your retirement goal is: A. $4,377.98 B. $1594.18 C. $3500.00 D. $2500.00
Your retirement plan: You hope to retire at age 62, and according to actuarial tables, you expect to live for 20 more years. You know of an investment option that will yield 4% annually compounded continuously, and you plan to withdraw $50,000 per year in retirement, for 20 years. How much money will you need to have in the account at the beginning of retirement so that you can withdraw $50,000/year for 20 years? Begin your solution with letting R(t)...
Please answer all parts with work 2. You retire at age 60 and expect to live another 23 years. On the day you retire, you have $568,900 in your retirement savings account. You are conservative and expect to earn 5.2% on your money during your retirement. How much can you withdraw from your retirement savings each month if you plan to die on the day you spend your last penny? i. (15 pts) Write down the discounted cash flow equation....
What is the amount of capital Troy and Kristy need to save by the start of retirement to support their income needs throughout retirement.?(Use Annuity Method) How much will Troy and Kristy need to save each year to fund their retirement goal? (Use Annuity Method) Assume, you discover that Troy and Kristy are unable to meet their retirement funding needs. What is the best alternative you would advise? Increase the risk in their portfolios, higher risk means higher returns and...