How much money you will need at retirement

Assignment Help Financial Management
Reference no: EM131562445

You are trying to decide how much money you will need at retirement. You expect to retire at age 65. You hope to travel extensively while you are healthy enough. To finance your travels (and cover your basic living expenses) you think you will need income of $173,000 per year (at the end of each year). You will make your first withdrawal on your 66th birthday. You expect to stay healthy enough for travel for the first 17 years after retirement and thus make a withdrawal of $173,000 at the end of each of those 17 years. Once your active travel years are over you will settle down into a retirement home. During your retirement home years you will only need $152,000 in income per year. You expect to live in the retirement home for 15 years. You will make the first retirement home withdrawal 18 years after retirement and all subsequent withdrawals will continue to be at year-end. If retirement savings will cam a return of 6%, then how much will you need at retirement to fund these planned withdrawals?

How much will you need at retirement to fund these planned withdrawal? $ (Round to the nearest cent.)

Reference no: EM131562445

Questions Cloud

Order to produce the same effective interest rate as offered : What quoted rate does Thames have to offer in order to produce the same effective interest rate as offered by Piccadilly?
Compare nominal interest versus real interest rates : Compare nominal interest versus real interest rates using US Treasury rates on 10 year notes;
How much principal have you paid over the first ten years : The loan is amortized over 25 years. How much principal have you paid over the first 10 years?
What is return on your portfolio : If the price of Merck increases to $45 and the price of Yahoo decreases to $22 per share, what is the return on your portfolio?
How much money you will need at retirement : You are trying to decide how much money you will need at retirement. How much will you need at retirement to fund these planned withdrawal?
Risk-free security-what is the beta of your portfolio : The expected return on the risk-free security is 3.50%. You construct a portfolio to match your friend's return. What is the beta of your portfolio?
What is present value of this stream of cash flows : Wally, president of Wally's Burgers, is considering franchising. What is the present value of this stream of cash flows?
Digital image processing machine three years : Duluth purchased a digital image processing machine three years ago at a cost of $50,000.
Accessories supplier makes deliveries every tuesday : Jill's Truck Stop sells specialty seat cushions that are designed to keep drivers awake on the road. Her accessories supplier makes deliveries every Tuesday,

Reviews

Write a Review

Financial Management Questions & Answers

  What is the value per share of stock

Expected to pay $2.10 per share dividend at the end of this year. The dividend is expected to grow at a constant rate of 9% a year. The required rate of return on the stock, rS, is 6%. What is the value per share of stock?

  Maturity making annual coupon payments

Consider an 7.0% coupon bond selling for $953.00 with 3 years until maturity making annual coupon payments

  What is your estimate of the current stock price

Ernie Manufacturing has projected sales of $155 million next year. Costs are expected to be $100 million and net investment is expected to be $17.5 million. Each of these values is expected to grow at 14 percent the following year, with the growth ra..

  About the compute future value

Compute the future value in year 7 of a $3,700 deposit in year 1 and another $3,200 deposit at the end of year 4 using a 8 percent interest rate.

  Calculate the change in the key balance sheet accounts

Calculate the change in the key balance sheet accounts between 2014 and 2015 and classify each as a source (S), a use (U), or neither (N), and indicate which type of cash flow it is: an operating cash flow (O), and investment cash flow (I) or a finan..

  Calculate the percent change in gross margin

Consider the following situation. Tricon Piping Systems manufactures small diameter potable polyethylene water pipe and achieves distribution primarily through plumbing wholesalers. The firm also sells directly to large construction companies, often ..

  What amount of depletion should be recognized

In 2015, Ellie Co. purchased property with natural resources for 28,000,000. The property had a residual value if 5,000,000. However the entity is required to restore the property to the original condition at a discounted amount of 2,000,000. What am..

  Solar-based heating installation

A family is considering an investment of 150000 dollar in a solar-based heating installation. They would need to take a loan from a bank with the expected interest rate of 6% for 20 years. Calculate the amount of the family's current yearly heating b..

  Calculate the required rate of return

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.7% rate of inflation in the future.

  Explain what drives exchange rates

Which of the following is thought to be the most relevant theory to possibly explain what drives exchange rates?

  Book value of equity is equal to market value of equity

Equity is worth $32 per share, and book value of equity is equal to market value of equity.

  Calculate the economic life in mscf per month

Calculate the Economic Life in Mscf per month for a gas lease with WI = 100%, NRI = 87.5%, condensate price = $15/STB, gas price = $2.25/Mscf, condensate yield = 5 STB/Mscf, gas and severance tax (each) = 4.5%. Assuming that ad valorem tax is negligi..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd