You are 25 years old today and intend to retire on your 60th birthday. On the date of your retirement you will be able to collect a lump sum payment of 200,000 from a workplace retirement fund. In order to maintain the quality of your retirement life you think you'll need 48,000 a year in spending money. You will withdrawl your first 48,000 at age 60 and every year thereafter. Your predict that interest rates will be 8% per year until you retire and 6% thereafter. How much will you need to deposit annually into an investement yielding market rates (starting on your 26th birthday ending on your 60th birthday) if you are to meet your retirement objectives. Oh by the way you think the world will end the day before your 80th birthday.
Thanks!|||I'm stuck on this question as well.. :S
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