You are trying to plan for your retirement. You project that you will retire in 40 years. After retirement you estimate that you will need to withdraw from your retirement account $50,000 per year with the first withdrawal to occur at the end of the first year of retirement (i.e. 41 years from today). You estimate that you will live long enough to make 25 annual withdrawals from the account. You want to accumulate the necessary retirement funds by making equal annual deposits into the retirement account, with the first payment to be made one year from today. You currently have $10,000 that you will deposit into the account today. You estimate that the account will earn 7%. What should be the amount of your annual deposit?
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