10. (10 points) At the end of the 46 years of work, you'll be 68 years...
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10. (10 points) At the end of the 46 years of work, you'll be 68 years old and assume you have accomplished your goal of having $3m saved. You plan to travel extensively and estimate that you'll require $250,000 per year to cover all of your living and travel expenses. If you can keep your money safely invested and earning a 3% annual rate of return, how old will you be when you must die so as not to be a drag on the living? For simplicity, assume annual draws of $250,000 beginning at the end of your first year of retirement. 11. (5 points) How does your answer change if you want to leave $1m to an heir? 10. (10 points) At the end of the 46 years of work, you'll be 68 years old and assume you have accomplished your goal of having $3m saved. You plan to travel extensively and estimate that you'll require $250,000 per year to cover all of your living and travel expenses. If you can keep your money safely invested and earning a 3% annual rate of return, how old will you be when you must die so as not to be a drag on the living? For simplicity, assume annual draws of $250,000 beginning at the end of your first year of retirement. 11. (5 points) How does your answer change if you want to leave $1m to an heir?
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To find out how old you need to be when you exhaust your savings we can use the present value of an ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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