You are planning to retire in 40 years. You currently have $ 300,000 in a bond mutual fund and $100,000 in a stock mutual fund. You plan to invest $10,000 per year in the stock mutual fund for the next 40 years (i.e., from t=1 to t=40). The bond fund is expected to earn 4% per year, compounded annually, and the stock account is expected to earn 9% per year, compounded annually, indefinitely. When you retire in 40 years, you plan to transfer your money from both accounts to an IRA account that will earn 6% per year, compounded annually. Upon retirement, you plan to withdraw an equal amount of money for each of next 20 years (i.e., t=41 to t=60), so that there will be nothing left in the account at the end of t=60. How much can you withdraw each year? Please be specific.

What would you answer be if you plan to bequest (or leave) $ 5 million to your children at the end of t=60?