Asked by Megan Driggers on May 18, 2024
Verified
What beginning-of-month withdrawals can a $400,000 RRIF (Registered Retirement Income Fund) sustain for 20 years if the investments within the RRIF earn 3.6% compounded monthly?
Registered Retirement Income Fund
A type of retirement plan under Canadian law that provides individuals with a method to receive income from the assets within their Registered Retirement Savings Plan (RRSP) in retirement.
Compounded Monthly
Interest calculated on the initial principal and the accumulated interest every month.
Beginning-of-month Withdrawals
Refers to funds being taken out of an account at the start of each month, often in the context of automated payment plans or investments.
- Evaluate the persistence of financial sustainability in investments and funds across time, given certain withdrawal or deposit parameters.
- Use financial calculations to plan for retirement and investment goals.
Verified Answer
YS
Learning Objectives
- Evaluate the persistence of financial sustainability in investments and funds across time, given certain withdrawal or deposit parameters.
- Use financial calculations to plan for retirement and investment goals.