Question 2 If you were 65 yrs old and starting retirement today and you had $1,000,000 in savings, and you were going to be in retirement for 30 years, how much would you have per month to live on? Assume you can invest at 6% rate of return per year. Present Value of an Annuity Regular amount withdrawn X Present Value Factor for 30 years and 6% = $1,000,000 Amount withdrawn per year = $1,000,000 / 13.765 = $72,648.02 72,648.02 / 12 months per year = $6054 per month Subtract Federal Income Tax of 20% = $4,843.20 after taxes to buy your retirement lifestyle. Create a budget as if you were retired to determine if you could live comfortably on $4,843.02 per month