Worksheet below
Q2: Roth IRA Worksheet (50 points) Lainey Wilkinson is a 36 years old individual who works at a local library. She starts to invest $3,000 per year this year in a "Roth IRA". For investments in a Roth IRA, you will never pay taxes on the interest/dividends/profits. Assume that her investments will make 8% annually until her retirement. 1. How much will be there in Lainey's IRA account when she retires at 66. Assuming that Roth IRA makes 7% annual return after retirement and she can make annual withdrawal, how much will she be able to withdraw per year if she plans to withdraw all the fund from Roth IRA in a) 15 years, b) 20 years, and c) 25 years. Use the attached worksheet 2. PARTI: Finding the Future Value of the IRA at retirement: You may use the factors in Appendix A (attached below) to find the value at maturity. [Fill up all the fields from 2018 to 2048] Year Age Years to retirement Value at Maturity (D) 2018 36 3 0 201937 29 2020 3 8 28 2048 6 6 I IRA Account Total: (Add all the numbers in column D)............... balance at retirement PART II: Find the annuity factors from Appendix D (attached below) 15 year factor .../year (Divide Total by the factor) 20 year factor Annual withdrawal: S........................./year (Divide Total by the factor) 25 year factor Annual withdrawal: S......................year (Divide Total by the factor) Q2: Roth IRA Worksheet (50 points) Lainey Wilkinson is a 36 years old individual who works at a local library. She starts to invest $3,000 per year this year in a "Roth IRA". For investments in a Roth IRA, you will never pay taxes on the interest/dividends/profits. Assume that her investments will make 8% annually until her retirement. 1. How much will be there in Lainey's IRA account when she retires at 66. Assuming that Roth IRA makes 7% annual return after retirement and she can make annual withdrawal, how much will she be able to withdraw per year if she plans to withdraw all the fund from Roth IRA in a) 15 years, b) 20 years, and c) 25 years. Use the attached worksheet 2. PARTI: Finding the Future Value of the IRA at retirement: You may use the factors in Appendix A (attached below) to find the value at maturity. [Fill up all the fields from 2018 to 2048] Year Age Years to retirement Value at Maturity (D) 2018 36 3 0 201937 29 2020 3 8 28 2048 6 6 I IRA Account Total: (Add all the numbers in column D)............... balance at retirement PART II: Find the annuity factors from Appendix D (attached below) 15 year factor .../year (Divide Total by the factor) 20 year factor Annual withdrawal: S........................./year (Divide Total by the factor) 25 year factor Annual withdrawal: S......................year (Divide Total by the factor)
