Question: 40 you 33. You want to retire at age 65, you begin your investment program at 25 with a one time deposit of $10,000

40 you 33. You want to retire at age 65, you begin

40 you 33. You want to retire at age 65, you begin your investment program at 25 with a one time deposit of $10,000 in a traditional IRA. On this investment you can earn 12% in the Vanguard 2055 retirement fund. At age 35 you come into an inheritance of $15,500 of which you decide to put into a Roth IRA, using a Fidelity index fund which you anticipate will yield 10% until 65. At 45 you remember taking will Elliott's class and listening to Bryan Washburn and Mark Russell and you realize that you have $14,000 extra saved for retirement. To be super safe you invest this sum in another Roth IRA which receive a 7% return. At 65 you want to retire at $120,000, gross a year for 30 years, (you need this much because you didn't factor in Inflation, (Elliott was too nice and didn't want you be depressed) and you anticipate you can earn 4% on the payout or annuity, not perpetuity. With all of this information, and it is not too much info how much will you need to invest each year at 10%, beginning at 25 to 65, using a mutual, traditional IRA account to achieve your retirement goal of $120,000 gross for 30 years? (3 points), part A. (this must mean that you were still short of funds from the other investments) The second part: (Part B) remember Bryan Washburn and Mark Russell indicated we are looking for tax-free income at retirement, and thus, you are the 25% tax bracket at retirement, how much will you net each year in retirement, after taxes? (3 points), (Part B.)

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