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Suppose you have just graduated Harvard and accepted a job with a $100,000 salary. Your 401(K)...

Suppose you have just graduated Harvard and accepted a job with a $100,000 salary. Your 401(K) will be maxed at 5% employee contribution and 1-1 employer match. You will work for exactly the next 45 years (for simplicity assume your salary is unchanged). At your 5 year review you will receive a one-time $20,000 bonus which you will deposit in your retirement plan. You will live exactly 25 years after you retire. You plan to leave $200,000 to Harvard to name a building after yourself. If you expect to earn 6% return annually, what are your annual withdrawals? USE EXCEL IF NEEDED

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Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 8 months ago
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