Assume end of year withdrawals

Reference no: EM13690230

Barney has $232,000 remaining in his retirement account that earns 6% NAR compounded monthly. He is 70 years old and wants to ease into retirement over ten years by withdrawing $50,000 today and then gradually deplete the fund by reducing the amount withdrawn by $5,000 each year thereafter (e.g. withdraw $50,000 today, withdraw $45,000 at the end of year 1, $40,000 at the end of year 2, through $0.00 in year 10). He will live on social security and Medicare after the retirement funds are depleted. Is this scheme possible? Explain why or why not. Assume end of year withdrawals.

Reference no: EM13690230

Questions Cloud

Interaction between politics and economics in two countries : Select a triad economy such as Japan, the United Kingdom, France, or Germany, and select one of the BRICs (Brazil, Russia, India, and China). Then compare the key elements of those two economic systems. Discuss the interaction between politics and ec..

Discuss the presentation of case during the hearing process : 1. What are the three basic protections for arbitration laid down by the Supreme Court in the Steelworkers' Trilogy? Explain the steps involved in choosing an arbitrator using the American Arbitration Association. Discuss the presentation of the case..

How much invested now at an interest rate : How much invested now at an interest rate of 9% compounded annually would be just sufficient to provide three payments as follows:

Assume end of year withdrawals : Barney has $232,000 remaining in his retirement account that earns 6% NAR compounded monthly. He is 70 years old and wants to ease into retirement over ten years by withdrawing $50,000 today and then gradually deplete the fund by reducing the amount ..

Is he correct from and economist viewpoint : My brother has a house worth $400,000 and he has no mortgage as it is paid off! His utility bills and insurance and maintenance cost him about $500 per month and property taxes and all other costs about another $500 per month.

Would the demand curve change when market price changes : Draw the demand curve for a firm under perfect competition. Would the demand curve change when market price changes? Explain.

Demand curve of a perfectly competitive firm is horizontal : Explain which of the four characteristics is primarily responsible for the fact that the demand curve of a perfectly competitive firm is horizontal? What is elasticity?

People must make choices of what to consume or produce : People must make choices of what to consume or produce because of

User Account

All Pages