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You have $50,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly. a. How many collrs in withdrawals per month would

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You have $50,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly. a. How many collrs in withdrawals per month would reduce this nest egg to zero in 20 years? Use Exhibit 14-7. Wildrawal 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 Exhibit 14-7 Dipping into Your Nest Egg Starting Amount of Nest Egg 10,000 15,000 20.000 25,000 30.000 40.000 50,000 60,000 BO,000 100,000 TOU CAN REDUCE TOUR MEST KOO TO ERRO BE WITHDRAMTMO TRES MUCH EACH MONTH POR TIR STATED MOSER OF TEARS 10 Year 15 Tears 20 TOT 25 Tora 30 Toare 107 $ 01 361 $ 56 161 121 102 91 24 215 162 136 121 112 269 202 152 140 122 243 200 182 168 430 323 272 20 224 537 400 340 304 201 485 400 364 337 647 544 GRG 449 1,074 BOB 680 607 561 170 Or Tou Can Withdraw This Much Each Month and Loara Tour Most Rgg Tntact $46 69 92 115 130 184 270 276 368 460 645 NOTE. Based on an interest rate of 55 percent per year, compounded quarterly Source: Select Committee on Aging, U.S. House of Representatives Exhibit 14-7 Dipping into Your Nest Egg YOU CAN REDUCE TOUR WEST TOO TO TERO AT MITRDRANTNO TITIS MUCH EACH MONTH FOR THE STATED WEER OP TEARS 10 TORS 15 Years 20 TORT 25 TORT 30 Tours 3109 5.61 56 161 121 102 91 84 162 136 121 112 269 202 170 152 322 26 200 182 160 430 333 272 270 537 404 140 201 665 405 400 360 37 OSO 667 544 469 1.074 680 607 561 Starting Amount of West Egg 310.000 15,000 20.000 25,000 30.000 40.000 50,000 60.000 10,000 100.000 Or You Can Withdraw This Much Ench Month and Leave Tour Mast Egg Tatact 946 69 92 115 190 186 230 160 20 304 275 268 NOTE: Based on an interest rate of 55 percent per year, compounded quarterly Source: Select Committee on Aging. US House of Representatives

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