Question

In our prior example, you need to have about $4,000,000 in savings at the age of 60 to fund retirement withdrawals that start at $250,000 on your 61st birthday, grow at 3% (the assumed inflation rate), and last for 35 years (i.e., from 61 to 95). You are currently 30 years old and have received an inheritance from your rich aunt. You have no savings. As in the prior example, assume that you will earn 8% per year on your investments. How large does the inheritance need to be to completely fund your retirement plan, which requires savings of $4,000,000 on your 60th birthday? ? $400,000 ? $500,000 ? $700,000 ? $600,000 ? $800,000

          In our prior example, you need to have about $4,000,000 in savings at the age of 60 to fund retirement
withdrawals that start at $250,000 on your 61st birthday, grow at 3% (the assumed inflation rate), and last
for 35 years (i.e., from 61 to 95).
You are currently 30 years old and have received an inheritance from your rich aunt. You have no savings.
As in the prior example, assume that you will earn 8% per year on your investments. How large does the
inheritance need to be to completely fund your retirement plan, which requires savings of $4,000,000 on
your 60th birthday?
? $400,000
? $500,000
? $700,000
? $600,000
? $800,000

In our prior example, you need to have about 4,000,000 in savings at the age of 60 to fund retirement
withdrawals that start at250,000 on your 61st birthday, grow at 3% (the assumed inflation rate), and last
for 35 years (i.e., from 61 to 95).
You are currently 30 years old and have received an inheritance from your rich aunt. You have no savings.
As in the prior example, assume that you will earn 8% per year on your investments. How large does the
inheritance need to be to completely fund your retirement plan, which requires savings of 4,000,000 on
your 60th birthday?
?400,000
? 500,000
?700,000
? 600,000
?800,000

Added by Julie C.

Question

Please give Ace some feedback