Calculating annuities you are planning to save for retirement over
To calculate how much can be withdrawn each month from the retirement account assuming a 25-year withdrawal period, one must first calculate the total amount saved over 30 years. This can be done by multiplying $600 and 12%, and adding it to $300 multiplied by 7%. The result is $858,800. Next, divide this amount by 25 to determine the annuity payout which comes out to be $34,352. Therefore, you would be able to withdraw approximately $34,352 each month during your retirement for 25 years if you invested $900 monthly for 30 years at rates of return mentioned above.