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Marie is 65 years old and ready to retire. She has a $ 1 million nest egg and wishes to spend $90,000 per year as
Marie is 65 years old and ready to retire. She has a $ 1 million nest egg and wishes to spend $90,000 per year as an ordinary annuity (i.e, she will withdraw $90,000 per year at the end of each year). If her investment portfolio earns 6% annually, at what age will she run out of money? (Longevity risk).
a. Around 76 years old | ||
b. Around 84 years old | ||
c. Around 98 years old | ||
d. Never | ||
e. None of the above |
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