You just turned 25 today and plan to retire on your birthday at age 52. Beginning with the day you retire, you want to withdraw $16,000 at the beginning of each month for 31 years. You also want to have enough in the account at age 60 to pay cash for a vacation home, which you estimate will cost $831,000. Based on your risk tolerance, you can earn 10.2% compounded monthly until you retire and 5.7% compounded monthly thereafter. If you currently have $23,000 in your account, how much would you need to deposit at the end of each month until you retire?

Answer rating: 100% (QA)

To determine the monthly deposit needed to reach your retirement and vacation home goals we need to ... View the full answer