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Retirement planning. John and Jane will each contribute to their RRSPs until they are each 71. When they turn 71, CRA rules require them to
Retirement planning.
John and Jane will each contribute to their RRSPs until they are each 71. When they turn 71, CRA rules require them to switch their RRSPs to an annuity and begin receiving payments. John and Jane will receive their first payments on their (respective) 71st birthdays. Each wish to receive a payment of $10,000 per month until they die. If the annuity pays 5% interest compounded monthly, how much must they have saved in their RRSPs if they live until their 81, 91 or 101 birthday?
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