bob and barbara are 55 and 50 years old bob 255291

Bob and Barbara are 55 and 50 years old. Bob annually contributes $1,500 to Barbara’s IRA. They plan to make contributions until Bob retires at age 65 and then to leave the funds in as long as possible (i.e., age 70 to ease calculations). Mike and Mary are 55 and 50 years old. Mike annually contributes $2,000 to Mike’s IRA. They plan to make contributions until Mike retires at age 65 and then leave the funds in as long as possible (i.e., age 70 to ease calculations). Both Barbara’s and Mike’s IRAs yield 10 percent annually. The combined life expectancy of both couples is to age 85 of the wife. What will be each couple’s annual withdrawal from the IRA based on life expectancy? (This problem is designed to illustrate an important point in financial planning for retirement. What is the point?)