Question
You are 30 years old today and you are beginning to plan for your retirement. You want to set aside 8,900 a year, for the
You are 30 years old today and you are beginning to plan for your retirement. You want to set aside 8,900 a year, for the next 35 years so that you can retire at age 65. You expect to live to a maximum age of 95 and you want to be able to withdraw a fixed amount of money once per year from your account on each of your 66th through 95th birthdays (making this a "normal" annuity). Your retirement account is expected to earn 9% per year for the first 30 years (5 years before retirement until retirement) and then 11% for the remaining 5 years until retirement. In retirement you will earn 7%. Determine the fixed amount you would be able to withdraw every year from age 66-95 (this is 30 payments)? All compounding is annual. If you do calculations outside of the file you are uploading please give me your inputs.
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