Question
In: Finance
Assignment: Determine whether you have enough monies to live comfortably each year for 20 years in...
Assignment:
Determine whether you have enough monies to live comfortably each year for 20 years in your dream state.
Assume you have the following assets at age 65:
- Pension Plan worth $400,000 today. You plan to take an annuity to withdraw all assets in 20 years. Assume 3% interest per year. You will get monthly payments for 20 years.
- Social Security - $18,000 per year for 20 years. Assume that this is the amount you will receive each year.
- Savings worth $150,000 today. You plan to take an annuity to withdraw all assets in 20 years. Assume 3% interest per year. You will get monthly payments for 20 years.
Answer the following questions:
- What will be your monthly amounts for the pension plan, social security, and savings? What will be the monthly total? Answers are rounded to the nearest penny.
- What will be the yearly amounts for the pension plan, social security, and savings? What will be the yearly total? Answers are rounded to the nearest dollar.
- What will be the 20-year amounts for the pension plan, social security, and savings? What will be the 20-year total amount? Round all answers to the nearest dollar.
- Is your total amount enough to retire comfortably in your dream state?
- What reasonable factors have not been considered that may increase or decrease your total amount. Please provide a short one sentence answer for each factor. Please note, there are very few factors but not none; therefore, do you provide the world of answers.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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