You expect to leave as bequest to your beneficiaries

Assignment Help Financial Management

Reference no: EM131834912

You are planning to save for retirement over the next 40 years. To do this, you will invest $500 a month in a stock account and $300 a month in a bond account. The return on the stock account is expected to be 9.6 percent, and the bond account will pay 5 percent. When you retire, you will combine your money into an account with a 6 percent return. You plan to make monthly withdrawals of $11,000 each and expect to live for 30 years in retirement. How much do you expect to leave as bequest to your beneficiaries?

Reference no: EM131834912

Questions Cloud

Is the yen expected to get stronger or weaker : Suppose the spot and three-month forward rates for the yen are ¥101.17 and ¥102.22, respectively. Is the yen expected to get stronger or weaker?

Calculate the exercise value of the option : Calculate the exercise value of the option? Calculate the exercise value if the price of the stock increases to $62 per share.

Your retirement account on the day you retire : If your investments earn a rate of return of 8.6 percent throughout your working life, how much will be in your retirement account on the day you retire?

Shorten the length of time it will take to pay off your loan : If you are able to do this each month, by how many years will you shorten the length of time it will take to pay off your loan?

You expect to leave as bequest to your beneficiaries : How much do you expect to leave as bequest to your beneficiaries?

Business finance course has motivated : Your business finance course has motivated you to begin investing for retirement in your company's 401K plan.

Price where different securities with the exact payments : The to the law of one price where different securities with the exact payments should have the same intrinsic value.

Calculate your monthly mortgage payment : Your down-payment is 10 percent of the purchase price. calculate your monthly mortgage payment (of principal and interest).

The analyst should use midyear cash flow : The analyst should use midyear cash flow discounting to approximate the daily cash flows.

User Account

All Pages