Question

Asked Dec 7, 2019

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Ted has a nest egg of 1,000,000 in liquid assets and will be in retirement for 30 years. Using 5.5% how much can he spend a month to keep his nest egg intact, and how much a month to make his nest egg go to zero?

Step 1

To keep her nest egg amount of $1,000,000 intact, Ted needs to withdraw 5.5%/12 of the liquid asset every month.

Step 2

Answer: He can withdraw $4583.33 every month for 30 years and can still keep his nest egg intact.

Step 3

Maximum amount that can be withdrawn to make the nest egg zero is calculated as...

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