If, when I reached retirement, I actually had a balance in my retirement account of $3.4...

 

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If, when I reached retirement, I actually had a balance in my retirement account of $3.4 million, how much can I withdraw at the end of each year if I assume 30 years of retirement and a return on my investments of 4.0% during retirement? <- answer: amount of yearly withdrawal I want to fund my retirement so that I can draw $200,000 at the end of every year, with the first withdrawal exacty one year after I stop working in 30 years. I will plan on a retirement period of 35 years. Assume that my investments will return 6% per year during my working years, but only 4% in my retirement. Also Assume that all cash flows and compounding occur at year end. First, how much do I need to have saved by the day I stop working? <- answer: needed balance Assuming I fund my retirement with a constant dollar contribution (I contribute the same dollar amount every year), then how much do I need to contribute per year? This is total contribution, including anything your employers may contribute to your account: <- answer: yearly contribution Find the effective annual rate for an APR of 18% that compounds semimonthly (i.e., twice per month). <- answer: EAR If, when I reached retirement, I actually had a balance in my retirement account of $3.4 million, how much can I withdraw at the end of each year if I assume 30 years of retirement and a return on my investments of 4.0% during retirement? <- answer: amount of yearly withdrawal I want to fund my retirement so that I can draw $200,000 at the end of every year, with the first withdrawal exacty one year after I stop working in 30 years. I will plan on a retirement period of 35 years. Assume that my investments will return 6% per year during my working years, but only 4% in my retirement. Also Assume that all cash flows and compounding occur at year end. First, how much do I need to have saved by the day I stop working? <- answer: needed balance Assuming I fund my retirement with a constant dollar contribution (I contribute the same dollar amount every year), then how much do I need to contribute per year? This is total contribution, including anything your employers may contribute to your account: <- answer: yearly contribution Find the effective annual rate for an APR of 18% that compounds semimonthly (i.e., twice per month). <- answer: EAR

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