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I will live off 25 years depends on my retirement account. Average age of living of my past family members is 85 years and for this reason I have estimated this time duration of living for my life. Now, I am 25 years old and I have started earning from this year only. I want to cover the basic cost of living of my total family so that the children do not need to concentrate on savings. So, with this post retirement regular annual income I will cover the annual cost of my family.
After retirement my cost of living will be minim um in terms of the essentials and regular expenses like the EMI of house loan and car loan will not be needed at that time. Apart from these regular expenses education will also be not needed at that time because children will become established and will be the earning family members when I will be retire from my job. So, I am expecting to get an annual post retirement withdrawal amount of at least 25% of the last annual income. I need this amount to be increased every year because of possibility of the increase of the inflation rate. This will result to increase in cost of living. So as the pre retirement income increases every year, the post retirement annual withdrawal amount will need to be increased. For getting 25% of the last annual of income after the 60 years of my age I need to save 20% of my total annual income. Rate of saving need I will increase at rate of increase in the annual income and for th8is purpose I am also considering the average inflation rate and the average percentage increase based on the past five years growth rate.
I do not want a fixed amount after my retirement and for this reason I want a regular income from my savings and also this income from needs to be increasing in order each year so that I can withdraw increasing amount each year after my retirement. For this amount of withdrawal I have to save 20% of savings each year with increase rate of savings of 1.5% due to the
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According to the terms agreed the holder is eligible for interest for the period which the bond is held for. c) Dividends: In return for their investment in the company by buying shares, shareholders receive a share of the profits at various intervals of time.
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