Find the retirement calculator at www.moneychimp.com to answer the following questions. Suppose you have $1,500,000 when you retire and want to withdraw an equal amount each year for the next 30 years.
- How much can you withdraw each year if you earn 7%
- What if you can earn 9%?
- What if the market failed and your earnings dropped to -.5%. How long would it take to drain your account if you did nothing about this loss pattern?
Sample Solution