Kathy and Mark Smith believe investing in their retirement is critical. Kathy began investing 20% of each paycheck in a retirement account when she was 20 years old. She has saved four times more than Mark who began saving when he was 35. If their total retirement savings equals $1,450,000, how much are Kathy's and Mark's investments worth?
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- Over the years, Ahmed and Aamina El-zayaty, of Berkeley, CA,desire an annual retirement income of $200,000 in their employer-sponsored retirement plans. Given that their parents all lived to be in their 90s, they each expect to live for 30 years past retirement. If the couple could earn 3 percent after-tax and after-inflation rate of return on their investments, what amount of accumulated savings and investments would they need?to help George and Jude Sullivan determine how much they need to retire early in about 20 years. Both have promising careers, and both make good money. As a result, they’re willing to put aside whatever is necessary to achieve a comfortable lifestyle in retirement. Their current level of household expenditures (excluding savings) is around $75,000 a year, and they expect to spend even more in retirement; they think they’ll need about 125 percent of that amount. (Note: 125 percent equals a multiplier factor of 1.25.) They estimate that their Social Security benefits will amount to $20,000 a year in today’s dollars and that they’ll receive another $35,000 annually from their company pension plans. George and Jude feel that future inflation will amount to about 3 percent a year, and they think they’ll be able to earn about 6 percent on their investments before retirement and about 4 percent afterward. Find out how big their investment nest egg will have to be and how much they’ll have…Two people plan to invest $50,000. Matt is going to invest it in one lump sum and leave it in the account for 25 years to use for retirement. Sarah is going to invest $2000 per year for 25 years and will also use the money in the account for retirement. Is it reasonable to expect that Matt will have more money in his account than Sarah does in 25 years if both accounts earn the same interest?
- Peter is 65 years old and has just attended his retirement party. He has amassed $1.50 million in retirement savings. He and his spouse have figured out that during retirement, they need to withdraw $100,000 at the end of each year from their retirement savings to maintain the standard of living that they would like to have. If they can earn 5% interest on the unspent balance in their retirement account, how many years will it be before their retirement savings are exhausted? O O 3 30 28 32 24 26 44 % 5 MacBook Pro (0 √ 2⁰ 00 * 8The Ali plan to retire and start receiving their Social Security benefits at the same time, when Jimmy is 67 and Lucy is 62 years old. Their monthly Social Security retirement benefits at those ages in today's dollars are estimated to be $3,200 for Jimmy and $2,000 for Lucy. They think their expenses in retirement in today's dollars will be 70% of their total cash outflows now. Other than Social Security, they will rely on their retirement savings in order to meet their retirement expenses. They want to assume they will die in the same year, when Jimmy is 95 and Lucy is 90 years old.Determine what the payments will be in the distribution phase. These will be the withdrawals Jimmy and Lucy will need to take monthly from their accounts, in order to meet their retirement expenses. How much is that monthly amount?Note: this question is asking about the withdrawals they will need, not about the expenses they will be incurring monthly.Monica has decided that she wants to build enough retirement wealth, if invested at 8 percent per year, to provide her with $3,500 of monthly income for 20 years. To date, she has saved nothing, but she still has 30 years until she retires. How much money does she need to contribute per month to reach her goal? First compute how much money she will need at retirement, then compute the monthly contribution to reach that goal.
- Mr. and Mrs. Hennesy met with their adviser and concluded that they would need $40,000 per year after they retire in order to live comfortably. They plan to retire 10 years from now and expect to enjoy 20-year of happy retirement before they go to the great beyond. How much should they deposit now in a bank account paying 9 percent to reach financial happiness during retirement?Suzette is receiving $10,000 today, $15,000 one year from today, and $25,000 four years from today. She will immediately invest these funds for retirement. If she earns 9.6 percent on her investments, how much will she have in savings 30 years from today?Mary's 25th birthday is today, and she hopes to retire on her 65th birthday. She has determined that she wil need to have $1,000,000 in her retirement savings account in order to live comfortably. Mary currently has no retirement savings, and her investments will earn 6% annually. How much must she deposit into her account at the end of each of the next 40 years to meet her retirement savings goal?
- Asha feels she needs $45,000 per year in retirement. If she receives $30,000 a year from Social Security , at what interest rate must Asha invest her $25,000 of savings for her total income to be at least $45,000 per yearJamie wants to have $1,000,000 for her retirement in 25 years. How much should she save annually if she thinks she can earn 10% on her investments?Determine how much George and Jude Sullivan need to retire early in about 20 years. Both have promising careers, and both make good money. As a result, they’re willing to put aside whatever is necessary to achieve a comfortable lifestyle in retirement. Their current level of household expenditures (excluding savings) is around $75,000 a year, and they expect to spend even more in retirement; they think they’ll need about 125 percent of that amount. (Note: 125 percent equals a multiplier factor of 1.25.) They estimate that their Social Security benefits will amount to $20,000 a year in today’s dollars and that they’ll receive another $35,000 annually from their company pension plans. George and Jude feel that future inflation will amount to about 3 percent a year, and they think they’ll be able to earn about 6 percent on their investments before retirement and about 4 percent afterward. Find out how big their investment nest egg will have to be and how much they’ll have to save…