Future Value and Annuity Payments Christy and Michael are trying to decide if they will have enough money to retire early in 15 years, at age 60. Their current assets are $250,000 in retirement plans and they have $90,000 in other investments. Together, they contribute $30,000 per year to their retirement plans and another $6,000 to other investments.
If their assets grow at 9 percent per year, how much money will they have when they turn 60?
After they retire, they will invest their wealth more conservatively and it will earn 6 percent per year. What will be the amount of their annual payments if they expect to live for 30 years in retirement?