Home / Questions / Barry and Samantha are starting to take their retirement planning seriously They are both ...
Barry and Samantha are starting to take their retirement planning seriously. They are both 46 and plan to retire in 20 years at the age of 66. They expect to live 15 years in retirement (a life expectancy of 81). Between their 401k and IRA accounts they currently have $66,311 in retirement savings. They currently have a combined income of $85,000 per year and expect to be able to live comfortably in retirement with 80% of their current purchasing power. They expect inflation to be 2% per year for the rest of their lives. They also expect to earn 10.5% per year (the average return on Blue Chip stocks) on their investments, both now and in retirement. Conduct an analysis of their retirement planning needs and provide them with a professionally written letter. In the letter and attached schedules provide information that answers the following questions. Please include a description of the relevant assumptions and any explanatory comments that make the results easier to understand. What amount of annual income will they need (after adjusting for inflation) in each of the fifteen years of retirement to have the purchasing power of 80% of their current income? Assuming they will continue to earn 10.5% on their investments, how much money will they need to have in their retirement accounts when they retire so that it will provide the fifteen years of income? Taking into account what they currently have in savings, how much will they have to save each month to meet their retirement needs? Sensitivity analysis: Redo the analysis assuming that they only earn 9% on their investments, instead of 10.5%. Determine the needed amounts so they have the money they need in retirement. Note: Assume that all payments will be made at the end of the period (ordinary annuity).
May 17 2020 View more View Less
Matthew Simpson and others created and operated a series of corporate entities to defraud telecommunications companies, creditors, credit reporting agencies, and others. ...
Aug 18 2021Provide all lone pairs / nonzero formal charges to complete each of the structures below (no oth atoms should be added to either structure).
Jun 21 2021Output from a software package follows:One-Sample Z:Test of mu = 20 vs > 20The assumed standard deviation = 0.75Variable = xN = 10Mean = 19.889StDev = ?SE Mean = 0.237Z =...
Apr 11 2020the elastisity of demand for factor of production by an industry will be larger if the share of the factor in the total cost of producing the final goods by the industry ...
Aug 18 2021The demand for a good (X) is estimated to be Q x = 22,000 - 2.5P x + 4P y - 1M + 1.5A x , where A x represents the amount of advertising spent on X and the other variable...
Apr 03 2020Ken Sulejmanagic, aged 19, signed up for a course in scuba diving taught by Madison at the YMCA. Before the instruction began, Ken was required to sign a form releasing M...
Aug 04 2021How many hydrogen atoms are present in 5.00 mg of aspartame?
Jun 20 2021A double-pipe heat exchanger is to be used to heat 6000 kg/h of 22 mol per centhydrochloric acid. The exchanger will be constructed from karbate (imperviouscarbon) and st...
Jun 09 2020In your view, which theory or combination of theories best explains motivation: drive-reduction theory, arousal theory, or Maslow’s hierarchy of needs? Which theory do yo...
May 21 2020Q 1 Organizational core competencies are the organizationâs strengths relative to competitors.To create value for stakeholders, an organization must have strengths rela...
Jun 29 2021