You are 40 years old today and you are beginning to plan for your retirement. You want to set aside $27,898 a year, you are so on the ball that you can set aside that first payment right NOW and then again every year for the next 25 years so that you can retire at age 65. (This is 26 payments total with the first one NOW!!!).
You expect to live to a maximum age of 89 and you want to be able to withdraw a fixed amount of money once per year- this, unlike you savings, is a “normal” annuity for 24 years. Your retirement account is expected to earn 9.7% per year during the time you are doing your saving. In retirement, you will earn 6.8%. 

Determine the fixed amount you would be able to withdraw every year in your retirement All compounding is annual. If you do calculations outside of the file you are uploading please give your inputs.

How much money will you have saved when you retire?

How much is your payment per year in retirement - if you pay yourself in equal payments from retirement until death? (assume a "normal annuity")

You win the lottery and don't need to touch any of your retirement savings. It just sits in the account earning interest. 

How much is in the account upon your death if you didn't take any distributions?

Answer rating: 100% (QA)

To determine the fixed amount you would be able to withdraw every year in your retirement we can use ... View the full answer