Question

For the past 15 years you have been depositing $700 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond fund, where you plan to continue depositing $700 per month until you retire in 20 years. How much can you anticipate having in the investment when you retire

Answer 1

Answer:

To determine the total amount of money that I will have in my account at the time of my retirement, we must consider the total amount paid into the PIMCO account during the last 15 years, and add to this value the potential amount to be paid in the next 20 years in the Vanguard account.

Thus, during the previous 15 years, I have deposited 700 dollars per month in my PIMCO account, with which I have a cumulative total of $ 126,000 (700x12x15). Also, I will potentially deposit another $ 168,000 (700x12x20) in the Vanguard account for the next 20 years.

Therefore, over the 35 years of savings, once the time has come to retire, I will have $ 294,000 in my retirement investment.