K can anyone know how to answer this? Looks like a simple annuity. What discount rate do we use if it says 'Balanced Growth'?
Q) Determine how much of a retirement nest egg is needed to retire with at age 65, inflation adjusted gross income of $55,000 and incorporate average OAS and CPP. As well, determine the same nest egg, assuming the first 5 years have negative returns of 5%.
Assumptions:
Inflation = 2%
Return = Balanced Growth
Life expectancy = 100
Taxes = Ignore
Timing of Withdraws = End of period
Q) Determine how much of a retirement nest egg is needed to retire with at age 65, inflation adjusted gross income of $55,000 and incorporate average OAS and CPP. As well, determine the same nest egg, assuming the first 5 years have negative returns of 5%.
Assumptions:
Inflation = 2%
Return = Balanced Growth
Life expectancy = 100
Taxes = Ignore
Timing of Withdraws = End of period