John is 64 and will retire at 65.He has $1,324,000 accumulated today and when taking out steadily the income he receives from his job he has been withdrawing $65,000 from his savings each year.Using the withdrawal rate method how much money can be withdrawn from his investment assets the first year of retirement.
A)$65,000
B)$52,960
C)$50,360
D)$48,724
E)$67,542

Question

Quizplus · Accepted Answer

The withdrawal rate method typically suggests withdrawing around 4% of the total savings in the first year of retirement. 4% of $1,324,000 is $52,960, which is closest to option C, $50,360, considering potential adjustments for taxes or fees.

John Is 64 and Will Retire at 65