Dean Has Already Implemented the First Stage of His Financial

question 40

Short Answer

Dean has already implemented the first stage of his financial plan. Over a 30-year period, he will continue to increase his annual year-end RRSP contributions by 2% per year. His initial contribution was $2,000. At the end of the 30 years, he will transfer the funds to an RRIF and begin end-of-month withdrawals that will increase at the rate of 1.8% compounded monthly for 25 years. Assume that his RRSP will earn 6% compounded annually and his RRIF will earn 3% compounded monthly. What will be the size of his initial RRIF withdrawal?

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