Question
1.You expect to live to be 95 years old. The age you plan to retire is 65. Assume you will leave nothing to inheritance from
1.You expect to live to be 95 years old. The age you plan to retire is 65. Assume you will leave nothing to inheritance from this account. You feel you can earn 3% on your savings during retirement. Given your current budget, you believe you will need $50,000 per year. How much money will you need to retire?
2.Assume you are currently 30 years old. The age you plan to retire is 65. You currently have $10,000 saved and are planning to add $7,000 per year. Your risk tolerance is above average and you believe you can average an 8% return on your investments. If they assumptions hold true, how much will you have when you retire?
Given your answer to Question 1, will you have enough? (Two answers)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started