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You are planning your retirement in 10 years
You are planning your retirement in 10 years. You currently have €150,000 in
a bond account and €450,000 in a stock account. You plan to add €9,000 per year at the
end of each of the next 10 years to your bond account only. The stock account will earn
an 11.5% return and the bond account a 7.5% return. When you retire, you plan to
withdraw an equal amount for each of the next 25 years at the end of each year and have
nothing left. Additionally, when you retire you will transfer your money to an account
that earns 6.75%. How much can you withdraw each year?
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