Need lots of advices !!!

#1
Hello everyone

I currently stuck on this question. Could you guys there help me?

"I'm 70 this year and going to retire.
I have accumulated saving of $180,000, conservatively invested. It's yielding 9% interest.
I also have a saving account of $12,000 at 5% interest. I keep this amount intact.
I receive $750/month in security payment for the rest of my life. Given that the payment is an index for inflation.
Suppose that I will live for 20 years more and willing to use up all of my investment. Given that inflation rate is 4%."
Questions:
1. Evaluate my incomes in nominal terms
2. Evaluate my incomes in real terms.

I'm so confused as my knowledge is quite limited. Kindly leave your advices.

Thanks

In him,
Paul
 

gunavadhi

Well-Known Member
#2
Hello everyone

I currently stuck on this question. Could you guys there help me?

"I'm 70 this year and going to retire.
I have accumulated saving of $180,000, conservatively invested. It's yielding 9% interest.
I also have a saving account of $12,000 at 5% interest. I keep this amount intact.
I receive $750/month in security payment for the rest of my life. Given that the payment is an index for inflation.
Suppose that I will live for 20 years more and willing to use up all of my investment. Given that inflation rate is 4%."
Questions:
1. Evaluate my incomes in nominal terms
2. Evaluate my incomes in real terms.

I'm so confused as my knowledge is quite limited. Kindly leave your advices.

Thanks

In him,
Paul

you are 70 and Need lots of advices ???
actually you are in a position to advice we ppl here....
 
#3
oh no lah. I'm actually 30 this year. That person in my question is 70. Honestly, I'm just a beginner in investment & finance. So really need lots of advices.
 

Taurus1

Well-Known Member
#4
In real life, nobody knows what will happen after 10 years or even 5. In any case, the person concerned needs to find a better yielding secure investment to be absolutely sure.
Suggest you PM Dan, and ask him re US investments. :)
 

Similar threads