You recently inherited $100,000. You plan to save $eight,000 during the next year (year 1) and enhance that quantity by 5% per year till you retire in 35 years. During that interval, you plan to plan to make investments completely in shares which might be anticipated to earn 11% per year. During retirement, you plan to spend money on safer investments that earn 6% per year. The anticipated inflation charge is 2.5%.a) If you happen to plan as if you’ll dwell without end and you would like to preserve fixed annual buying energy during retirement, how a lot are you able to withdraw every year during retirement? b) What’s the buying energy of these annual withdrawals in today’s ?

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