How much can you withdraw each month during retirement


You are planning to save for retirement over the next 15 years. To do this, you will invest $1100 a month in a stock account and $500 a month in a bond account. The return on the stock account is expected to be 7 percent and the bond account will pay 4 percent. When you retire you will combine your money into an account with a 5 percent return. How much can you withdraw each month during retirement assuming a 20-year withdrawal period?

A) $2,636.19
B) $2,904.11
C) $3,008.21
D) $3,037.36
E) $3,406.97

 

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Finance Basics: How much can you withdraw each month during retirement
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