Use the following data to calculate the answer to questions 5-10 Chelsea is planning for retirement at age 70 and has come to you, her financial advisor, for your guidance. At 45 years of age, Chelsea has $350,000 invested in various retirement vehicles. She has an annual income of $75,000, and contributes 4% of her income to her retirement account at the beginning of each month. She currently lives on $50,000 annually and believes that she can live on that same amount (in today's dollars). Of course, inflation will affect that number over time. Chelsea's investments are currently earning an average annual 8% return, and inflation is 5%. She believes she'll live until age 95. Use this information to answer the series of questions. Each question builds on the next. 1. How much will Chelsea need to withdraw from her retirement account in the first year of retirement? (Round to the nearest $1,000) O 1. $169,000 O2. 350000 O 3. 1068000 O 4. $50,000 How much does Chelsea need to have saved in her retirement account by age 70 to meet her retirement needs until age 95 if she keeps her assets invested? (Round to the nearest $1,000) Answer: How much will Chelsea have in her retirement account at age 70 based on her current contribution plan? (Round your answer to the nearest $1,000). Answer:
Use the following data to calculate the answer to questions 5-10 Chelsea is planning for retirement at age 70 and has come to you, her financial advisor, for your guidance. At 45 years of age, Chelsea has $350,000 invested in various retirement vehicles. She has an annual income of $75,000, and contributes 4% of her income to her retirement account at the beginning of each month. She currently lives on $50,000 annually and believes that she can live on that same amount (in today's dollars). Of course, inflation will affect that number over time. Chelsea's investments are currently earning an average annual 8% return, and inflation is 5%. She believes she'll live until age 95. Use this information to answer the series of questions. Each question builds on the next. 1. How much will Chelsea need to withdraw from her retirement account in the first year of retirement? (Round to the nearest $1,000) O 1. $169,000 O2. 350000 O 3. 1068000 O 4. $50,000 How much does Chelsea need to have saved in her retirement account by age 70 to meet her retirement needs until age 95 if she keeps her assets invested? (Round to the nearest $1,000) Answer: How much will Chelsea have in her retirement account at age 70 based on her current contribution plan? (Round your answer to the nearest $1,000). Answer:
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter14: Planning For Retirement
Section: Chapter Questions
Problem 2FPE
Related questions
Question
am. 115.
Transcribed Image Text:Use the following data to calculate the answer to questions 5-10
Chelsea is planning for retirement at age 70 and has come to you, her financial advisor, for your guidance. At 45 years of age, Chelsea has $350,000 invested in various retirement vehicles. She
has an annual income of $75,000, and contributes 4% of her income to her retirement account at the beginning of each month.
She currently lives on $50,000 annually and believes that she can live on that same amount (in today's dollars). Of course, inflation will affect that number over time.
Chelsea's investments are currently earning an average annual 8% return, and inflation is 5%. She believes she'll live until age 95.
Use this information to answer the series of questions. Each question builds on the next.
1. How much will Chelsea need to withdraw from her retirement account in the first year of retirement? (Round to the nearest $1,000)
O 1. $169,000
O2. 350000
O 3. 1068000
O 4. $50,000
How much does Chelsea need to have saved in her retirement account by age 70 to meet her retirement needs until age 95 if she keeps her assets invested? (Round to the nearest $1,000)
Answer:
How much will Chelsea have in her retirement account at age 70 based on her current contribution plan? (Round your answer to the nearest $1,000).
Answer:
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