uppose that you want to only work until you are 55, retire, live at the lake, fish, hunt and watch grass grow. At age 55, you have accumulated $350,000 in your retirement account. The tricky part is you ave to decide how long you wish to withdraw the funds. You hope that if you retire at age 55 that you live another 40 years, right? Keep in mind that when you deplete the retirement fund it is GONE You want to spread it out over what you think is the rest of your lifespan. So, how much can you withdraw annually beginning at age 55 and withdrawing for your fund for the next 40 years (till age 95), if the balance of the account is left in the fund earning 8% annually? HINT: It will not be a very large withdrawal How much do you need to invest annually to reach your goal? I want to have $250,000 in 25 years Suppose you are getting close to retirement age- well, if you consider 25 years from retirement age being close. You want to begin investing money toward having the capacity to pay cash for a second home in your favorite vacation spot when you retire. You don't want to use money from your existing retirement fund for this large expense 2. You believe that based on inflation, you will need $250,000 in 25 years for this purchase. If you can invest in a fund that will yield an average return of 8% over the next 25 years, how much do you need to invest annually to meet your goal? 3. Today's value of $ needed in the future Need a down payment for a home? Assume that you graduate college at age 22 and great Aunty Edna gives you a nice gift of $20,000. You just HAVE to spend some of it right now to set up your apartment in Dallas. You know you need to invest some of it so you can meet your goal of buying a home at age 32. You think you will need $30,000 for the down payment and closing costs for the home How much money can you spend today, and how much money do you need to invest so that in 10 ears you have the money for the house if you can invest in a fund that yields an average return of 7%? 4. Invest $1,000 every year beginning at age 20. If you invest $1,000 ANNUALLY beginning at age 20 and ontinue to invest that same amount in your investment fund until you are 55 years old, how much will you have accumulated in the fund yields an average of 6%? Invest $1,000 at age 21. If you make a onetime investment at age 21 of $1,000 of 8% annually, how much money will you have in the investment after 40 years? that yields an average return