In: Finance
Carlo and Maria are both 46 years old and they are thinking of whether or not they can afford to retire at age of 60. They want to be able to spend 5200 USD after the retirement till the age of 82 on monthly basis as a result of investing all of their saving on the date of retirement into a financial institution at 3% p.a
They have some financial instruments in which they have been investing already.
Type of Account |
Current Balance |
Average Return |
Compound frequency |
Further contribution |
Joint IRA |
74203 |
3,90% |
monthly |
350 |
Bond Fund |
39937 |
3,50% |
monthly |
150 |
Savings |
1200 |
2,80% |
quarterly |
|
Bank CDs |
46889 |
4,40% |
semiannual |
|
Income Fund |
12376 |
7,50% |
monthly |
|
Money MKT |
36737 |
4,80% |
daily |
|
Index Fund |
315092 |
3,90% |
monthly |
|
Index Fund TSA |
353039 |
13,10% |
monthly |
860 |
Utilities Stock Fund |
28800 |
7,50% |
monthly |
How do you think can they afford to retire at age of 60? Can they increase the amount of their spending after the retirement if they are expecting to spend for further 22 years after the retirement ?
Carlo and Maria retirement fund is well inline of the their requirement. Yes, they can retire at the age of 60. Since they have a sufficient fund they can even increase there post retirement spending.