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Determine whether you have enough monies to live comfortably each year for about 20 years in your dream state of Nevada. Assume you are at
Determine whether you have enough monies to live comfortably each year for about 20 years in your dream state of Nevada.
Assume you are at age 65 and have the following assets:
- Pension Plan worth $400,000. You plan to take an annuity to withdraw all assets in 20 years. Assume 3% interest per year. You will get monthly payments for 20 years.
- Social Security - $18,000 per year for 20 years. Assume that this is the amount you will receive each year.
- Savings worth $150,000. You plan to take an annuity to withdraw all assets in 20 years. Assume 3% interest per year. You will get monthly payments for 20 years.
Answer the following questions:
- What will be the monthly amount received from the pension plan, social security, and savings? What will be the monthly total? Round answers to the nearest penny.
- What will be the yearly amount received from the pension plan, social security, and savings? What will be the yearly total? Round answers to the nearest dollar.
- What will be the 20-year amounts received from the pension plan, social security, and savings? What will be the 20-year total amount? Round answers to the nearest dollar.
- Is the total amount enough to retire comfortably in your dream state? Explain.
- What reasonable factors have not been considered that may increase or decrease your total amount. Please provide a short one sentence answer for each factor. Please note, there are very few factors but not none.
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