Case pety, 56,just retired after 31 years of teaching. He is a hus- to invest his lump-sum bonus and other accounts now that he and father of two children who are still dependent. He re has retired. He also wants to know how much he can withdraw iveda $150,000 lump-sum retirement bonus and will receive per month, considering he has two children and a nonworking 2 800 per month from his retirement annuity. He has saved spouse. Because he has children, his current monthly expenses $150,000 in a 403(b) retirement plan and another $100,000 in total $5,800. He is not eligible for Social Security until age 62 other accounts, His 403(b) plan is invested in mutual funds, but when he will draw approximately $1,200 per month; however nost of his other investments are in bank accounts earning 2 or he would rather defer drawing on Social Security until age 67 to 3 percent annually. Bill has asked your advice in deciding where increase his monthly benefit amount to $1,550. Questions 1. Bill has an emergency fund already set aside, so he can use 3. Considering the information obtained in question 2, should Bill wait until age 67 for his Social Security benefits? If he his $400,000 of savings for retirement. How much can he withdraw on a monthly basis to supplement his retirement waits until age 67, how. will his monthly Social Security annuity if his investments return 5 percent annually and he benefit change the answers to question 2? (Hint: Calculate his portfolio value as of age 67 and then calculate how long expects to live 30 more years? that amount will last if it earns 5 percent annually.) 2. Ignoring his Social Security benefit, is the amount deter- mined in question 1 sufficient to meet his current monthly expenses (keep in mind that he will receive a pension of $2,800 per month)? If not, how long will his retirement last 4. If the inflation rate averages 3.5 percent during Bill's retire- ment, how old will he be wben prices have doubled from vels? How much will a soda cost when Bill dies, if current le expenses remain the same? What if his ex-he lives the full 30 years and the soda costs $1 today? penses are reduced to $4,500 per month