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You have $40,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly. a. How many dollars in withdrawals per month would
You have $40,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly. a. How many dollars in withdrawals per month would reduce this nest egg to zero in 20 years? Use Exhibit 14-7. Withdrawal es b. How many dollars per month can you withdraw for as long as you live and still leave this nest egg intact? Use Exhibit 14-7. Withdrawal xhibit 14-7 Dipping into Your Nest Egg YOU CAN REDUCE YOUR NEST EGG TO ZERO BY WITHDRAMING THIS MUCH EACH MONTH FOR THE STATED NUMBER OF TEARS.. Starting Amount of Nest Egg 10 Years 15 Years 20 Years. 25 Years $ 10,000 $ 107 $81 $ 68 $ 61 15,000 161 121 102 91 20,000 215 162 121 136 25,000 269 202 152 170 322 30,000 243 204 182 40,000 243 430 323 272 50,000 537 404 340 304 60,000 645 485 408 364 80,000 859 647 544 486 100,000 1,074 607 680 NOTE: Based on an interest rate of 5.5 percent per year, compounded quarterly. Source: Select Committee on Aging, U.S. House of Representatives 30 Years $56 84 112 140 168 224 281 337 449 561 Or You Can withdraw This Much Each Month and Leave Your Nest Egg Intact $ 46 69 92 115 138 184 230 276 368 460
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