Question

In: Finance

You are planning your retirement in 15 years.  You plan to retire with $3,000,000 and your retirement...

You are planning your retirement in 15 years.  You plan to retire with $3,000,000 and your retirement account earns 4.8% compounded monthly. After you retire, you plan on withdrawing $15,000 per month from your account until you have nothing left. How many years can you live off your retirement account after you retire?

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used.

jeff jeffy answered 3 months ago
Next > < Previous

Related Solutions

You plan on retiring in 30 years and want to have $3,000,000 saved in your retirement...
You plan on retiring in 30 years and want to have $3,000,000 saved in your retirement account. You will earn an average rate of return of 6% on your investments. How much will you need to invest each month in order to get to your goal.
Suppose that you are planning for retirement. You are 26 and plan to retire when you...
Suppose that you are planning for retirement. You are 26 and plan to retire when you are 70, 44 years from now. Your investment goal (based on the 3-legged retirement model) is to gain $5 million at the time you retire. Your opportunity cost of capital (discount rate) is 8 percent. What would be your maximum withdrawal from your personal investment account if you plan to exhaust your personal savings at age 90? The project average rate of inflation (for...
Suppose that you are planning for retirement. You are 26 and plan to retire when you...
Suppose that you are planning for retirement. You are 26 and plan to retire when you are 70, 44 years from now. Your investment goal (based on the 3-legged retirement model) is to gain $5 million at the time you retire. Your opportunity cost of capital (discount rate) is 8 percent. What would be your maximum withdrawal from your personal investment account if you plan to exhaust your personal savings at age 90? The project average rate of inflation (for...
You are planning on saving for retirement. You wish to retire in 40 years, and you...
You are planning on saving for retirement. You wish to retire in 40 years, and you would like to withdraw an annual sum each year to live on starting 40 years from today - You have determined that you will need $100,000 to live on (in today’s dollars) - You estimate inflation (cost of living) to be 3% - Your estimated rate of return pre-retirement is 10%; in retirement 7% Assume your life expectancy once retired is another 20 years....
Suppose you plan to retire in 33 years. Today, your retirement has a balance of 500,000....
Suppose you plan to retire in 33 years. Today, your retirement has a balance of 500,000. If you can earn 3% per year in your retirement account, how much more do you need to deposit now so that you can have 2.9 million when you retire? 1. 694,761.60 2. 1,593,376.12 3. 1,093,376.12 4. 593,376.12
You plan to retire in year 20 Your retirement will last 25 years starting in year...
You plan to retire in year 20 Your retirement will last 25 years starting in year 21 You want to have $50,000 each year of your retirement. How much would you have to invest each year, starting in one year, for 15 years , to exactly pay for your retirement ,if your investments earn 6.00% APR (compounded annually)?
You plan to retire in year 20 Your retirement will last 25 years starting in year...
You plan to retire in year 20 Your retirement will last 25 years starting in year 21 You want to have $50,000 each year of your retirement. How much would you have to invest each year, starting in one year, for 15 years , to exactly pay for your retirement ,if your investments earn 6.00% APR (compounded annually)? Answers: $21,349 $21,546 $20,930 $20,520
You plan to retire in year 20 Your retirement will last 25 years starting in year...
You plan to retire in year 20 Your retirement will last 25 years starting in year 21 You want to have $50,000 each year of your retirement. How much would you have to invest each year, starting in one year, for 15 years , to exactly pay for your retirement ,if your investments earn 6.00% APR (compounded annually)? a. 21.,349 b. 21, 546 c. 20,520 d. 20,930
You are planning your retirement investment plan. Assume you are now twenty-two years old and plan...
You are planning your retirement investment plan. Assume you are now twenty-two years old and plan to make investments as follows: Invest $6,000 at the end of each year for the first ten years. Invest $12,000 at the end of each year for the second ten years. Invest $18,000 at the end of each year for the third ten years. Invest $24,000 at the end of each year for the fourth ten years. Assume that you invest in a diversified...
You are planning your retirement in 35 years. You currently have $8,000 and plan to add...
You are planning your retirement in 35 years. You currently have $8,000 and plan to add $3,000 at the end of each of the next 35 years. You expect to earn a return of 8.5% per year from your retirement investment account. When you retire in 35 years, you will transfer your money to an annuity account managed by an insurance company that pays a return of 3.5% per year. This annuity account will allow you to withdraw an equal...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT