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YOU CAN REDUCE YOUR NEST EGG TO ZERO BY WITHDRAWING THIS MUCH EACH MONTH FOR THE STATED NUMBER OF YEARS ... Or You Can Withdraw This Much Each Starting Month and Leave Amount of 10 Years 15 Years 20 Years 25 Years 30 Years Your Nest Nest Egg Egg Intact $ 10,000 $ 107 $ 81 $ 68 $61 $ 56 $ 46 15,000 161 121 102 91 84 69 20,000 215 162 136 121 112 92 25,000 269 202 170 152 140 115 30,000 322 243 204 182 168 138 40,000 430 323 272 243 224 184 50,000 537 404 340 304 281 230 60,000 645 485 408 364 337 276 80,000 859 647 544 486 449 368 100,000 1,074 808 680 607 561 460 NOTE: Based on an interest rate of 5.5 percent per year, compounded quarterly. Source: Select Committee on Aging, U.S. House of Representatives

YOU CAN REDUCE YOUR NEST EGG TO ZERO BY WITHDRAWING THIS MUCH EACH MONTH FOR THE STATED NUMBER OF YEARS ... Or You Can Withdraw This Much Each Starting Month and Leave Amount of 10 Years 15 Years 20 Years 25 Years 30 Years Your Nest Nest Egg Egg Intact $ 10,000 $ 107 $ 81 $ 68 $61 $ 56 $ 46 15,000 161 121 102 91 84 69 20,000 215 162 136 121 112 92 25,000 269 202 170 152 140 115 30,000 322 243 204 182 168 138 40,000 430 323 272 243 224 184 50,000 537 404 340 304 281 230 60,000 645 485 408 364 337 276 80,000 859 647 544 486 449 368 100,000 1,074 808 680 607 561 460 NOTE: Based on an interest rate of 5.5 percent per year, compounded quarterly. Source: Select Committee on Aging, U.S. House of Representatives

Essentials Of Investments
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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Jamie Lee and Ross estimate that they will have $1 million in liquid assets to withdraw from at the start of their retirement. They plan to be in retirement for 30 years. How much do you think they can withdraw each month and still leave their nest egg intact? How much can they withdraw each month and that will reduce their nest egg to zero?

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YOU CAN REDUCE YOUR NEST EGG TO ZERO BY WITHDRAWING THIS MUCH EACH MONTH FOR THE STATED NUMBER OF YEARS ... Or You Can Withdraw This Much Each Starting Month and Leave Amount of 10 Years 15 Years 20 Years 25 Years 30 Years Your Nest Nest Egg Egg Intact $ 10,000 $ 107 $ 81 $ 68 $61 $ 56 $ 46 15,000 161 121 102 91 84 69 20,000 215 162 136 121 112 92 25,000 269 202 170 152 140 115 30,000 322 243 204 182 168 138 40,000 430 323 272 243 224 184 50,000 537 404 340 304 281 230 60,000 645 485 408 364 337 276 80,000 859 647 544 486 449 368 100,000 1,074 808 680 607 561 460 NOTE: Based on an interest rate of 5.5 percent per year, compounded quarterly. Source: Select Committee on Aging, U.S. House of Representatives
Transcribed Image Text:YOU CAN REDUCE YOUR NEST EGG TO ZERO BY WITHDRAWING THIS MUCH EACH MONTH FOR THE STATED NUMBER OF YEARS ... Or You Can Withdraw This Much Each Starting Month and Leave Amount of 10 Years 15 Years 20 Years 25 Years 30 Years Your Nest Nest Egg Egg Intact $ 10,000 $ 107 $ 81 $ 68 $61 $ 56 $ 46 15,000 161 121 102 91 84 69 20,000 215 162 136 121 112 92 25,000 269 202 170 152 140 115 30,000 322 243 204 182 168 138 40,000 430 323 272 243 224 184 50,000 537 404 340 304 281 230 60,000 645 485 408 364 337 276 80,000 859 647 544 486 449 368 100,000 1,074 808 680 607 561 460 NOTE: Based on an interest rate of 5.5 percent per year, compounded quarterly. Source: Select Committee on Aging, U.S. House of Representatives
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