+20 You are planning to save for retirement over the next 35 years. To do this, you will invest $870 per month in a stock account and $470 per month in a bond account. The return of the stock account is expected to be 10.7 percent, and the bond account will pay 6.7 percent. When you retire, you will combine your money into an account with a 7.7 percent return.
How much can you withdraw each month from your account assuming a 30-year withdrawal period?
You are planning to save for retirement over the next 35 years. To do this, you will invest $870 per month in a stock account and $470 per month in a bond account. The return of the stock account is expected to be 10.7 percent, and the bond account will pay 6.7 percent. When you retire, you will combine your money into an account with a 7.7 percent return.
How much can you withdraw each month from your account assuming a 30-year withdrawal period?
1) Your savings of $870 per month on your stock account will amount to =$35,552.60
2)Your savings of $470 per month on your bond account will amount to =$18,111.71
3)Your combined savings will amount to =$53,664.31
4)Your annual withdrawals will amount to $1,972.22 per year for 30 years @ 7.7% comp. annually.
