Which of the Following Strategies Will Allow Real Retirement Spending

question 52

Multiple Choice

Which of the following strategies will allow real retirement spending to remain approximately equal, assuming savings of $1,000,000 invested at 8 percent, a 25-year horizon, and 4 percent expected inflation?

• A)Spend approximately $63,000 annually
• B)Spend approximately $78,225 annually
• C)Spend approximately $93,680 annually
• D)Spend approximately $127,500 annually Real Rate = -1 = 3.85%
• $1,000,000 = pmt

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Definitions:

Psychoanalytic

Pertaining to the theory and practice of psychoanalysis, which emphasizes unconscious psychological processes and their effects on behavior.

Gestalt

A psychological theory that emphasizes the holistic and intrinsic patterns and shapes people perceive in their visual and experiential worlds.

Training

A process designed to improve skills, knowledge, and competencies to perform specific tasks or roles effectively.

Cognitive-behavioral

A psychological approach that involves modifying dysfunctional emotions, behaviors, and thoughts through a goal-oriented, systematic procedure.