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Mark Bob Age: 30 29 Years until retirement: 35 36 Years in retirement: 0 0 Inflation assumption: 2.2% 2.2% Return during savings: 8.5% 8% Return
Mark Bob
| Age: | 30 | 29 |
| Years until retirement: | 35 | 36 |
| Years in retirement: | 0 | 0 |
| Inflation assumption: | 2.2% | 2.2% |
| Return during savings: | 8.5% | 8% |
| Return during retirement: | 4.5% | 4.5% |
| Annual raises % | 1.75% | 1.75% |
| Current income: | 70,000 | 65,000 |
| Income in 15 yrs. (calculate) | $1,050,000 | $975,000 |
| Current retirement-401(k) savings: | 70,000 | 65,000 |
| Savings Per Year for Next 15 yrs. (from now) Simple Math | ||
| Savings Per Year for the remaining yrs. Until Retirement Simple Math | ||
| How much should the 401(k) account be worth ($) after the first 15 years? | ||
| How much should the 401(k) accounts have in them on the day of retirement? | ||
| How much will each be able to withdraw annually for retirement if they want equal annual payments every year and leave nothing to their heirs/beneficiaries? | ||
| How much would the payment be if the retirement accounts were combined and Therese's Life Expectancy was used for the annual payment. | ||
| The first annual withdrawal in question c, how much would that payment be worth in today's dollars? | ||
| The first annual withdrawal in question d, how much would that payment be worth in today's dollars? | ||
| Comment (at least 25 words) on John's and Therese's ability to live on this amount. You are to state why you believe they will or will not be able to live on the expected annual distributions. | ||
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