who are still dependent. He received a $150,000 lump-sum retirement bonus and will receive $2,800 per month from his retirement annuity. He has saved $150,000 in a 403(b)-retirement plan and another $100,000 in other accounts. His 403(b) plan is invested in mutual funds, but most of his other investments are in bank accounts earning 2 or 3 percent annually. Bill has asked your advice in deciding where to invest his lump-sum bonus and other accounts now that he has retired. He also wants to know how much he can withdraw per month, considering he has two children and a nonworking spouse. Because he has children, his current monthly expenses total $5,800. He is not eligible for Social Security until age 62, when he will draw approximately S1,200 per month; however, he would rather defer drawing on Social Security until age 67 to increase his monthly benefit amount to $1,550. Questions 1. If the inflation rate averages 3.5 percent đuring Bill's retirement, how old will he be when prices have doubled from current levels? How much will a soda cost when Bill dies if he lives the full 30 vears and the soda costs $1 today?
who are still dependent. He received a $150,000 lump-sum retirement bonus and will receive $2,800 per month from his retirement annuity. He has saved $150,000 in a 403(b)-retirement plan and another $100,000 in other accounts. His 403(b) plan is invested in mutual funds, but most of his other investments are in bank accounts earning 2 or 3 percent annually. Bill has asked your advice in deciding where to invest his lump-sum bonus and other accounts now that he has retired. He also wants to know how much he can withdraw per month, considering he has two children and a nonworking spouse. Because he has children, his current monthly expenses total $5,800. He is not eligible for Social Security until age 62, when he will draw approximately S1,200 per month; however, he would rather defer drawing on Social Security until age 67 to increase his monthly benefit amount to $1,550. Questions 1. If the inflation rate averages 3.5 percent đuring Bill's retirement, how old will he be when prices have doubled from current levels? How much will a soda cost when Bill dies if he lives the full 30 vears and the soda costs $1 today?
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
Section: Chapter Questions
Problem 1PS
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