Question
Felicity Thomas, a 25-year old college graduate, wishes to retire at age 65. To supplement other sources of retirement income, she can deposit $4,000 each
Felicity Thomas, a 25-year old college graduate, wishes to retire at age 65. To supplement other sources of retirement income, she can deposit $4,000 each year into a tax-deferred individual retirement account (IRA). The IRA will earn 8% return for the next 40 years.
If she immediately starts making end of the year $4,000 deposits and upon retirement invests her IRA money in a 25 year annuity earning 5%, how much income will she have?
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The Handbook For Investment Committee Members
Authors: Russell L. Olson
1st Edition
0471719781, 978-0471719786
