Which of the following strategies will allow real retirement spending to remain approximately equal, assuming savings of $1,000,000 invested at 8 percent, a 25-year horizon, and 4 percent expected inflation?
A)Spend approximately $63,000 annually
B)Spend approximately $78,225 annually
C)Spend approximately $93,680 annually
D)Spend approximately $127,500 annually Real Rate = -1 = 3.85%
$1,000,000 = pmt

Question

Quizplus · Accepted Answer

Spending approximately $63,000 annually will allow real retirement spending to remain approximately equal, assuming savings of $1,000,000 invested at 8 percent, a 25-year horizon, and 4 percent expected inflation.

Which of the Following Strategies Will Allow Real Retirement Spending