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Now It's Finally time to Start Spending My Retirement Nest Egg Not so fasti People work long and hard for years on their retirement plans.

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Now It's Finally time to Start Spending My Retirement Nest Egg Not so fasti People work long and hard for years on their retirement plans. Paying smart attention to the plans doesn't stop when it's time to enjoy the fruits of the labor and sacrifice. When it comes time for you to begin using your funds, you'll need to make sure you follow some rules in order to avoid unnecessary expenses. Some questions follow that will help you remember wise ways to manage your money as well as word pitfalls that could cost you. Keeping in mind that the primary purpose of tax sheltered plans is to provide for your retirement, there are regulations in place to discourage early withdrawals, which presumably are intended for uses other than funding your retirement. The discouragement comes in the form of paying penalties and some taxes for which you would not otherwise be liable. However, there are some with allowed that wouldn't require you to pay penalties, os doing is certain qualifications are satisfied. What are some of these penalty free withdrawals? Check all that way. 8 Early retirement Home renovation Home parco Medical Wedding College expenses It can be costly to spend your funds before the retirement rules allow it for any reason, that spending doesn't fall into the narrow range of penalty free early withdrawals. The farther away you are from retirement age, the cost that will most likely have the greatest negative impact is the Amy closed out her Roth IRA when she was 70 years old. The ending balance was $250,000. How much did Amy receive? $200,000 550.000 $250,000 Marais finally ready to retire with a nest ego of $700,000. She wants her money to last 20 years and, taking inflation into consideration, expects the balance in her mest egg to earn per year. Use the following interest table to compute how much Maria could withdraw per year before her money ran out Round your answer to the nearest dollar B Interest Factors - Present Value of an Annuity Years 2% 3% 4% 5% 15 12.8493 11.9379 11.1184 10.3797 16 13.5777 12.5611 11.6523 10.8378 17 14.2919 13.1661 12.1657 11.2741 18 14.9920 13.7535 12.6593 11.6896 19 15.6785 14.3238 13.1339 12.0853 20 16.3514 14.8775 13.5903 12.4622 21 17.0112 15.4150 14.0292 12.8212 22 17.6580 15.9369 14.4511 13.1630 23 18.2922 16.4436 14.8568 13.4886 24 18.9139 16.9355 15.2470 13.7986 25 19.5235 17.4131 15.6221 14.0939 26 20.1210 17.8768 15.9828 14.3752 27 20.7069 18.3270 16.3296 14.6430 28 21.2813 18.7641 16.6631 14.8981 29 21.8444 19.1885 16.9837 15.1411 30 22.3965 19.6004 17.2920 15.3725 40 27.3555 23.1148 19.7928 17.1591 Mana might want to have more money during her retirement years. What are some good options she should explore? Check all that apply. Try to find a way to earn more interest on her nest egg balanon Withdraw less per year than the preceding calculation indicates Buy an annuity B Get a part-time job Now It's Finally time to Start Spending My Retirement Nest Egg Not so fasti People work long and hard for years on their retirement plans. Paying smart attention to the plans doesn't stop when it's time to enjoy the fruits of the labor and sacrifice. When it comes time for you to begin using your funds, you'll need to make sure you follow some rules in order to avoid unnecessary expenses. Some questions follow that will help you remember wise ways to manage your money as well as word pitfalls that could cost you. Keeping in mind that the primary purpose of tax sheltered plans is to provide for your retirement, there are regulations in place to discourage early withdrawals, which presumably are intended for uses other than funding your retirement. The discouragement comes in the form of paying penalties and some taxes for which you would not otherwise be liable. However, there are some with allowed that wouldn't require you to pay penalties, os doing is certain qualifications are satisfied. What are some of these penalty free withdrawals? Check all that way. 8 Early retirement Home renovation Home parco Medical Wedding College expenses It can be costly to spend your funds before the retirement rules allow it for any reason, that spending doesn't fall into the narrow range of penalty free early withdrawals. The farther away you are from retirement age, the cost that will most likely have the greatest negative impact is the Amy closed out her Roth IRA when she was 70 years old. The ending balance was $250,000. How much did Amy receive? $200,000 550.000 $250,000 Marais finally ready to retire with a nest ego of $700,000. She wants her money to last 20 years and, taking inflation into consideration, expects the balance in her mest egg to earn per year. Use the following interest table to compute how much Maria could withdraw per year before her money ran out Round your answer to the nearest dollar B Interest Factors - Present Value of an Annuity Years 2% 3% 4% 5% 15 12.8493 11.9379 11.1184 10.3797 16 13.5777 12.5611 11.6523 10.8378 17 14.2919 13.1661 12.1657 11.2741 18 14.9920 13.7535 12.6593 11.6896 19 15.6785 14.3238 13.1339 12.0853 20 16.3514 14.8775 13.5903 12.4622 21 17.0112 15.4150 14.0292 12.8212 22 17.6580 15.9369 14.4511 13.1630 23 18.2922 16.4436 14.8568 13.4886 24 18.9139 16.9355 15.2470 13.7986 25 19.5235 17.4131 15.6221 14.0939 26 20.1210 17.8768 15.9828 14.3752 27 20.7069 18.3270 16.3296 14.6430 28 21.2813 18.7641 16.6631 14.8981 29 21.8444 19.1885 16.9837 15.1411 30 22.3965 19.6004 17.2920 15.3725 40 27.3555 23.1148 19.7928 17.1591 Mana might want to have more money during her retirement years. What are some good options she should explore? Check all that apply. Try to find a way to earn more interest on her nest egg balanon Withdraw less per year than the preceding calculation indicates Buy an annuity B Get a part-time job

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