Question you are 30 years old and start planing your, Ask an Expert

Finance

Question: You are 30 years old and start planing your retirment. You expect to be able to invest $4,000 each year until you are 50 years old, and then $5,000 each year until you retire at age 65.

a. You expect to earn 6.1% on your investments. What is the expected value of your retirement account at age 65?

b. During retirement, you expect to spend about $160,000 per year. You expect to live until you are 85 years old, and will continue to earn 6.1% on your remaining investments until you die. How much do you need to have saved at age 65 to fund your retirement? Is your retirement completely funded by your investments? If not, what is the difference?

c. You just received a large inheritance. If your retirement is not completely funded by your investments, how much of the inheritance do you need to set aside now (at age 30) to fund the remainder of your retirement needs, if you expect to earn 6.1% on your investments?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92603334

Have any Question?Write your Review or question?

Related Questions in Basic Finance

In todays environment how could firms balance their

In today's environment, how could firms balance their marketing activities while meeting the demand of consumers from the main culture as well as from a subculture?

What is the comparison and contrast between ethical

What is the comparison and contrast between ethical leadership and unethical leadership qualities in an ethnically diverse and multicultural workplace in terms of project management. What is an example of each qualities?

Magenta corporation wants to raise 508 million in a

Magenta corporation wants to raise 50.8 million in a seasoned equity offering, net of all fees. Magenta stock currently sells for $14 per share. The underwriters will require a spread of $.50 per share, and indicate that ...

Your father who is 60 plans to retire in 2 years and he

Your father, who is 60, plans to retire in 2 years, and he expects to live independently for 3 years. Suppose your father wants to have real income of $40,000 in today's dollars in each year after he retires. His retirem ...

You have an opportunity to invest 2500 today and receive

You have an opportunity to invest $2,500 today and receive $3,000 in three years. What would be the return on your investment if you accepted this opportunity? (Round answer to 2 decimal places, e.g. 52.75.) Return on ...

You are are evaluating a project that costs 1140000 has a

You are are evaluating a project that costs $1,140,000, has a ten-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 54,000 units p ...

How much of the opposing side should you share in a

How much of the opposing side should you share in a presentation to a multiple-perspective audience, and what techniques would you use?

Fools gold jewelry has just paid a stock dividend of 150

Fools Gold Jewelry has just paid a stock dividend of $1.50. Over the next 3 years, Fools Gold plans to increase their dividend by 10% each year. Beginning in year 4 Fools Gold will decrease their dividend to 5% growth fo ...

Question - time value of money answer the following

Question - TIME VALUE OF MONEY Answer the following questions: a. Assuming a rate of 10% annually, find the FV of $1,000 after 5 years. b. What is the investment's FV at rates of 0%, 5%, and 20% after 0, 1, 2, 3, 4, and ...

You invested 12000 in a stock that has an expected return

You invested $12,000 in a stock that has an expected return of 18% and $21,000 in a stock with an expected return of 10%. What is the portfolio's expected return?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert