Mr. Wilks is 30 years old today and wants to set aside an equal amount at the end of each of the next 30 years into a retirement fund earning 10% p.a. so that he can retire at age 60. At retirement , the funds will be transferred to an investment account earning 6% p.a. He expects to live to age 80 and wants to be able to withdraw $375,000 per year from the account on his 61st through 80th birthdays. He also wants to leave $550,000 as an inheritance to his children at age 80.  How much money will he need to save in his retirement account per year to achieve these objectives

Q: Ricky, an executive VP contemplating retirement on his sixty fifth birthday, decides to create a…

A: The present value is the present worth of the amount that has to be paid or received in future.

Q: Daniel Jackson is 30 years and wants to retire when he is 65. So far he has saved (1) $6,730 in an…

A: (1) Balance in IRA account=$6,730 Interest rate in IRA account=0.083   (2) Balance in money market…

Q: ade a 20-year retirement plan and according to his plan, he aimed to withdraw 6000 TL at the end of…

A: Annuity grow by some constant amount of gradient and due to this growth amount grow much amount.

Q: how much will John have in his retirement account at age 60?

A: Present age is 25 Rate of return = 8% Retirement age = 60

Q: You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 25 and…

A: Your annual investment, PMT = $ 1,500    Starting age = 25Number of Years, n = 15Annual Interest…

Q: Determine the annual interest rate he will need to meet his goal.

A: Interest Rate: With the help of interest rate, present value, or future value of the cash flows can…

Q: Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns…

A: A retirement goal is a financial target an individual sets to achieve a comfortable and financially…

Q: Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns…

A: To calculate the contributions Derek needs to make to his retirement account, use the future value…

Q: Donna is 40 years old today and she wishes to accumulate $2,240,000 by her sixty fifth birthday so…

A: SOLUTION- LET THE AMOUNT TO BE DEPOSITED ANNUALLY =X RATE OF INTEREST =6% P.A CURRENT AGE =40 YEARS…

Q: Mr. Smith is 35 years old. He has the following 2 goals: First goal: To retire when he is 60 years…

A: Inflation is the decline in the purchasing power of a given currency overtime.

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A: The present value of growing perpetuity is calculated by

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A: It is a case of an annuity due that is applied to the problem. It is due to the reason that the…

Q: Mr. Smith is 35 years old. He has the following 2 goals: First goal: To retire when he is 60 years…

A: Age Year in retirement Withdrawal Present Value = Withdrawal/ (1+interest%)^Year Working 60 0…

Q: Please do not answer this question in excel thank you in advance.  Jill and Frank plan to retire in…

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Q: Denise has $180,983 saved for her upcoming retirement and will make no further contributions. She…

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Q: Janet Lopez wishes to establish a trust fund from which her son can withdraw $15,000 every six…

A: The objective of the question is to find out the initial amount that Janet needs to deposit in the…

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Q: Henry Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides…

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Q: Stella has $3,000,000 in her investment fund. She wishes to withdraw $338,868 at the end of each of…

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Q: EZ Leifer plans to retire at the age of 65 and believes he will live to be 90.  EZ wants to receive…

A: Present value of annuity due = P + [P * {1-[1/(1+r)^n]/r}] Where, n = 90 years - 65 years =25years P…

Q: Van, age 40, is starting his savings plan this year by putting away $2,200.00 at the end of every…

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Q: Clarence Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday,…

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Q: You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 30 and…

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A: GIVEN, YEARLY PAYMENT = $1500 N = 15 YEARS R = 12% LET FOUR YEARLY WITHDRAWAL = A  withdrawal from…

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Q: Leon Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to…

A: Here,Annual Withdrawal from the period of June 30 2029 to June 30, 2032 is $25,300Interest Rate (r)…

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Q: Homer is 65 years old and ready to retire. He has $200,000 in a 401k at retirement account.…

A: Retirement amount =$200000 401 K

Q: At age 60, a man established a trust fund of R20 000 which will pay his family a regular amount at…

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Q: William North has just inherited $895,000 which he would like to use as part of his retirement nest…

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Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.