Which of the Following Strategies Will Allow Real Retirement Spending

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