28 Dec '07 14:121 edit

Joe and Mattie, born in 1973, go through college and university, get Phd's, he in lit and her in art. They are very successful, and in 1985, get married. Together they make 400,000 dollars a year, or 240,000 after taxes. Rather than living like millionaires, they decide they will budget their finances to live on 60,000 a year so they sock away 180,000 a year. So in 1986, their first child is born, Alex. Joe writes novels, sells a lot of books every year, and she paints, with her paintings in national galleries. Each year they get a 5% raise so the second year they take home 252,000 and so forth. Every two years another kid is born, first Maria and then Sara. So frst kid in 86, second in 88, third in 1990. So they keep within their 60K budget. It turns out the kids (as well as the parents) have won the intelligence lottery, they all test out at 195 IQ so they will go to college. They slam through school, getting HS diploma's at 13 and at 14 start university. They get scholarships, but only 20,000 and the total tuition, books, housing, cars, etc., comes to 70,000 per year so mom and pop kick in 50,000 a year. The kids, being genius level, go to university for ten years and all three get three separate Phd's in that time, launching very successful carreers in their own right. However, the parents have paid 1.5 MILLION for their three kids education by the time school is finished. The last kid graduated in the year 2014 and the parents want to retire and live off the interest. They have invested at 5% the banked money Which works out to 3 % after taxes. and want to retire after one more big push in 2015 and retire at the beginning of 2016. So how much money per year will they have from the interest on their savings starting in the year 2016?