Carlo and Maria are both 46 years old and they are thinking of whether or not...

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 ?

Solutions

Expert Solution

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.

jeff jeffy answered 1 year ago

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