Reference no: EM132227611

Question: My age is 44 and 2 months. Please help answer for all question. I will need back by 9 pm (10 hours)

1. Assume you drink one coffee per day, 5 days a week. Assume coffee price is $4.00. That makes it $20 per week and $80 per month. Assume you can invest $80 per month in the stock market and assume you can earn 1 % per month on your stock investment or 12 % per year.

A: At your retirement, when you are 65 years old, how much you will have in your retirement account if you switch from coffee drinking to investing in the stock market?

B. Assume that when you get to 65 (retirement age) you switch your funds from stock market investment to bond market investment. Assume you can earn 7% on your bond investment. You decide to withdraw a constant amount each year for the next 20 years when you get to retirement age of 65. How much will be your annual withdrawal from age 66 to 85 (Nothing left at 85) if you switch your coffee drinking to stock and bond investments.

C. Given your age, and assume average stock market return is 10% per year; how much per month you should save (In IRA or IRA type, tax defer) in order to accumulate $1,000,000.00 when you get to 67 retirement age?