Rowdy Ronnie wants to withdraw $500/month from his TFSA in retirement Hits current TFSA balance is $26,875.33 and he is comfortable using a nominal rate of return of 6% for his TESA prior to retirement. Throughout his retirement, Rowdy feels as though he will accept a lower nominal return of 40% from his TFSA Rowdy alto believes that it is reasonable to use a long-term inflation rate of 2.25% wherever inflation needs to be factored in.

If Rowdy is wanting to start making beginning of the month withdrawals from his TFSA in exactly eighteen years and wants to keep making those withdrawals for thirty years thereafter, how much must he contribute to his TFSA at the end of each month between now and then?

Answer rating: 100% (QA)

Sure Lets calculate Rowdys TFSA withdrawal plan Since Rowdy wants to withdraw 500month we need to de... View the full answer