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Posted: June 15th, 2022

You have discovered a magical elixir that will allow you to live forever

You have discovered a magical elixir that will allow you to live forever. You subsequently offered the rights to that elixir for $15,000,000 and have invested that cash at 10% curiosity. The anticipated inflation fee is 2.5% forever. Lastly, you want to pay in your daughterâs marriage ceremony which you estimate will happen in 25 years. Measured in todayâs dollars, you plan to spend $500,000 on the marriage. Assuming that you plan to by no means work once more and that you want to have the identical buying energy annually (excluding the marriage value) throughout your retirement, what’s the most quantity you can withdraw throughout your first 12 months of retirement? For simplicity, assume that the primary withdrawal will happen in a single 12 months, the second in two years, and so on.

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