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You are 60 years old. Currently, you have $10,000 invested in an IRA and have just received a lum-sum distribution of $50,000 from a pension
You are 60 years old. Currently, you have $10,000 invested in an IRA and have just received a lum-sum distribution of $50,000 from a pension plan, which you roll over into an IRA. You continue to make $2,000 annual payments to the regular IRA and expect to earn 9% on those funds until you start withdrawing the money at age 70 (ie after 10 years). The IRA rollover will earn 9% for the same duration. a) How much will you have when you start to make withdrawls at age 70? b) If your funds continue to earn 9% annually and you withdraw $17,000 annually, how long will it take to exhaust your funds? c) If your funds continue to earn 9% annually and your life expectancy is 18 years, what is the maximum you may withdraw each year? Please show all your work. Thank you
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