Question
Steve and Tamra want to establish a Roth IRA annuity to supplement their retirement.They are currently 34 years old and they want to retire by
Steve and Tamra want to establish a Roth IRA annuity to supplement their retirement.They are currently 34 years old and they want to retire by the time they are 65. They find an annuity that earns 2.7% compounded monthly. The couple wishes to be able to withdraw monthly payments of $4,000 out of their account during their retirement until they reach an age of 80 years.
a) How much needs to be in the account when they first retire?
b) What payments do they need to make now while they are still working to acheive that goal?
c) During their working years, what is the total of all deposits made into the retirement account?
d) During their retirement years, what is the total of all withdrawals taken from the retirement account?
e) Over the lifetime of the account, how much total interest was earned?
2. Bill and Jean Miller want to establish a Roth IRA annuity to supplement their retirement. They are currently 33 years old and they want to retire by the time they are 59. They find an annuity that earns 2.7% compounded monthly. After speaking with their financial advisor, they decide they will need to withdraw monthly payments of $6,000 out of their account during their retirement until they reach an age of 85 years.
a) How much needs to be in the account when they first retire?
b) What payments do they need to make now while they are still working to acheive that goal?
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