A retiree receives a payout from his Roth IRA where the taxes have already been paid.
He wants to take out 10% of the original amount at the beginning of each year for living expenses. The remaining money will earn 6% interest. How long before the money runs out?
For example, he starts with $400,000 and takes out $40,000 each year. The first year the interest would equal $360,000 * 6% or $21,600. So the second year would start with $381,000.
If you have a formula to put in a spreadsheet, it would help.
2007-10-05
09:39:21
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3 answers
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asked by
Menehune
7