33. You want to retire at age 65, you begin your investment program at 25 with a one time deposit of $10,000 in a traditional IRA. On this investment you can earn 12% in the Vanguard 2055 retirement fund. At age 35 you come into an inheritance of $15,500 of which you decide to put into a Roth IRA, using a Fidelity index fund which you anticipate will yield 10% until 65. At 45 you remember taking Elliott's class and listening to Bryan Washburn and Mark Russell and you realize that you have $14,000 extra saved for retirement. To be super safe you invest this sum in another Roth IRA which you will receive a 7% return. At 65 you want to retire at $120,000, gross a year for 30 years, (you need this much because you didn't factor in Inflation, (Elliott was too nice and didn't want you be depressed) and you anticipate you can earn 4% on the payout or annuity, not perpetuity. With all of this information, and it is not too much info how much will you need to invest each year at 10%, beginning at 25 to 65, using a mutual, traditional IRA account to achieve your retirement goal of $120,000 gross for 30 years? , part A. (this must mean that you were still short of funds from the other investments) The second part: (Part B) remember Bryan Washburn and Mark Russell indicated we are looking for tax-free income at retirement, and thus, you are the 25% tax bracket at retirement, how much will you net each year in retirement, after taxes? (Part B.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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33. You want to retire at age 65, you begin your investment program at 25 with a one time deposit of
$10,000 in a traditional IRA. On this investment you can earn 12% in the Vanguard 2055 retirement
fund. At age 35 you come into an inheritance of $15,500 of which you decide to put into a Roth IRA,
using a Fidelity index fund which you anticipate will yield 10% until 65. At 45 you remember taking
Elliott's class and listening to Bryan Washburn and Mark Russell and you realize that you have $14,000
extra saved for retirement. To be super safe you invest this sum in another Roth IRA which you will
receive a 7% return. At 65 you want to retire at $120,000, gross a year for 30 years, (you need this
much because you didn't factor in Inflation, (Elliott was too nice and didn't want you be depressed) and
you anticipate you can earn 4% on the payout or annuity, not perpetuity. With all of this information,
and it is not too much info how much will you need to invest each year at 10%, beginning at 25 to
65, using a mutual, traditional IRA account to achieve your retirement goal of $120,000 gross for 30
years?
, part A. (this must mean that you were still short of funds from the other
investments) The second part: (Part B) remember Bryan Washburn and Mark Russell indicated we are
looking for tax-free income at retirement, and thus, you are the 25% tax bracket at retirement, how
much will you net each year in retirement, after taxes?
(Part B.)
Part A
(Traditional IRA 25 to 65,).....
Part B--
--(After tax income)......
that the traditional IRA portion of your total funds is taxable at 25%.)
∞
(please remember
Transcribed Image Text:33. You want to retire at age 65, you begin your investment program at 25 with a one time deposit of $10,000 in a traditional IRA. On this investment you can earn 12% in the Vanguard 2055 retirement fund. At age 35 you come into an inheritance of $15,500 of which you decide to put into a Roth IRA, using a Fidelity index fund which you anticipate will yield 10% until 65. At 45 you remember taking Elliott's class and listening to Bryan Washburn and Mark Russell and you realize that you have $14,000 extra saved for retirement. To be super safe you invest this sum in another Roth IRA which you will receive a 7% return. At 65 you want to retire at $120,000, gross a year for 30 years, (you need this much because you didn't factor in Inflation, (Elliott was too nice and didn't want you be depressed) and you anticipate you can earn 4% on the payout or annuity, not perpetuity. With all of this information, and it is not too much info how much will you need to invest each year at 10%, beginning at 25 to 65, using a mutual, traditional IRA account to achieve your retirement goal of $120,000 gross for 30 years? , part A. (this must mean that you were still short of funds from the other investments) The second part: (Part B) remember Bryan Washburn and Mark Russell indicated we are looking for tax-free income at retirement, and thus, you are the 25% tax bracket at retirement, how much will you net each year in retirement, after taxes? (Part B.) Part A (Traditional IRA 25 to 65,)..... Part B-- --(After tax income)...... that the traditional IRA portion of your total funds is taxable at 25%.) ∞ (please remember
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