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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 a full employment economy) is 3 percent and, inflation will affect your withdrawal amount. How would inflation affect your annual withdrawal? Provide the amortized schedule

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jeff jeffy answered 1 year ago
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