Lump sum required
Not what you're looking for?
Can a $100,000 take care of retirement if I Choose the retirement amount and my retirement age (55) and using a discount rate of 6% will the $100,000 get me there? How big of a lump sum would I need? What are some other options to supplement the lump sum to get to me to choose my retirement savings amount?
Purchase this Solution
Solution Summary
Response helps in calculating Lump sum required.
Solution Preview
Can a $100,000 take care of retirement if I Choose the retirement amount and my retirement age (55) and using a discount rate of 6% will the $100,000 get me there? How big of a lump sum would I need? What are some other options to supplement the lump sum to get to me to choose my retirement savings amount?
Lump sum required will be Future value/(1+rate of interest)^duration
Rate of interest=6%, n= duration=30 years
=100000/(1+6%)^30
=$17411.01
Hence $17411 is required right now to make the amount of $100000 in 30 years.
What are some other options to supplement the lump sum to get to me to choose my retirement savings amount?
Some basics on retirement plan:
Various types of retirement plans are 401(k) plan and the traditional pension plan. As per the Employee Retirement Income Security Act (ERISA) covers two types of pension plans: defined benefit plans and defined contribution plans.
As per dol, "A defined benefit plan promises a specified monthly benefit at retirement. As per Investopedia "Defined benefit plan is an ...
Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.