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Joe has just retired. He is 55 years old. He wants to figure out how...

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Accounting

Joe has just retired. He is 55 years old. He wants to figure out how much he can withdraw from his account each year starting today and increasing at the rate of inflation, assuming his life expectancy is 85 and that he wishes to leave $120,000 to is favorite charity when he dies. Assume a nominal rate of return of 8% with inflation of 3.5%. Joes retirement account today is valued at $3.0 million. Verify with a schedule of annual cash flows assume all money moves at the beginning of the year. Run a two-way data table that varies inflation from 2.5-7% (increments of 0.5%) and his nominal rate of return between 4-10% (increments of 0.5%). Analyze your findings with reference to his initial withdrawal amount. What is the worse case scenario? How does the amount he wishes to leave impact the amount he can withdraw analyze with a one-way data table varying the amount from $70,000 to $150,000 in increments of $10,000. Examine how his retirement age impacts the amount he can withdraw. You should use a 1 way data table to examine this.

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