Mr. and Mrs. Jones have informed me that they want to have their saving last throughout their retirement. Therefore, the objective should be to ensure their needs are met without undertaking any unnecessary risk.
The following analysis will help determine the appropriate investment strategy for the couple. Their plan is to invest $1,600,000 into an annuity due with the expectation of pulling out enough to maintain their current lifestyle, currently estimated to be $120,000. To account for inflation, this figure would need to increase annually by the U.S. historical average of 3.2% (Source: Inflation Data). Considering the average life expectancy in the U.S. is 85 years (Source: SSA.gov), the distributions should be slated to continue until the couple reaches the age of 95 (95+ 2 Std dev). Taking that all into account, a 15% return would require an initial investment of less than $1,125,000 as demonstrated below.
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The couple would maintain more than $475,000 of their assets, for which they've expressed no desire to do so. Additionally, a 15% return would open them up to a great deal of risk. Even if the investment strategy succeeded in yielding the couple the aforementioned return, the risk in itself extremely distressing for the couple
The objective is to invest in an annuity due that allows thee couple to maintain their current lifestyle throughout their retirement years, while exposing them to the least amount of risk possible. Since there is no need to have any for the couple to have any remaining savings, any additional capital would be best utilized by reducing risk. After some trial and error, I've determined that an 10.4% interest rate would require the initial investment of just under $1,600,000, as demonstrated below.
Net Rate = (1 + 0.104)/(1 + 0.03) - 1 = 0.0698 or
How much would you pay for a security that pays you $500 every 4 months for the next 10 years if you require a return of 8% per year compounded monthly?
I would opt to take the $5,000 now, combine it with the existing saving of $10,000, and invest it at the 3% interest rate. The average 3% rate of return would produce earned interest of $463.64, which would exceed the three-year return of $250.00 by $213.64.
investor should invest $369.35 in asset A and the remaining $630.65 in asset B. The
For Investment A: (40 – 25)/ 10= 1.5 standard units= close to 94% to get the 40 million in return
b. If you inherited $100,000 today and invested all of it in a security that paid an 8% rate of return, how much would you have in 15 years?
The Chicago Fire Department and The Chicago Police Department are in danger of losing their pensions. These brave men and women put their lives on the line every day and this is how the government repays them. This is not securing their future of retirement. Citizens believe that our first responder’s pensions should be a high priority to Chicago’s to-do list. This City of Chicago owes these brave men and women a pension like they promised and if that means cutting funds to other things, then it should be done. The pension secures the men and women’s future of retirement, and by taking it away from them it may create unstable lives.
1. If Mrs. Beach wanted to invest a lump sum of money today to have $100,000 when she retired at 65 (she is 40 years old today) how much of a deposit would she have to make if the interest rate on the C.D. was 5%?
An investment firm with the name of J.D.Williams, Inc. helps many of its clients invest over $120 million for the last 40 years. We have many personal investors helping many individuals with their investments. We create personalized plans for our clients depending on their needs. Our company has multiple methods to help its clients with investments. We use many different approaches when it comes to assessing and making an appropriate plan for the investment.
Plaintiff has received a kosher diet and his concerns are a dietary matter which does not state a constitutional violation.
When people are asked how people will plan or rethink for retirement, the first thing that people will think about, is saving. There are some positive ways to save money, the author suggests to the readers to sign up for 401(k) plan. It is a plan help employees save for retirement, 401(k) should allow anyone to build up a nice nest egg. For example, “In Dave Ramsey’s The Total Money Makeover, for instance, he gives us “Joe and Suzy Average” who invest $7,500 per year ($625 per month) using their tax-free retirement account. They do this from age 30 to 70, getting 12 percent interest per year. At the end, they have $7,588,545 to their names.” When people invest in 401(k) plan, it is safer and more money in retirement and it also has a benefit that you don’t need to pay for tax when you take the money out. Beside 401(k), people prefer to invest money in the stock market for retirement-plan. According to author “ During a recent 40- year period,
The disturbing cost that can be detrimental to the results of an investment such as retirement is the rate of inflation. An inflation rate as low as 4 percent might be small in the present time. However, considering the effect of such an inflation on the future result of a long-term investment, it is evident that it is
Assume that one of Philip’s clients is a married man, aged 36 with two young children, who wishes to reallocate a significant portion of his retirement funds that are currently invested in certificates of deposit. Philip recommends a growth investment, and he identifies the three representative possibilities shown in Table A.
You are saving for the college education of your two children. They are two years apart in age; one will begin college 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $23,000 per year per child, payable at the beginning of each school year. The annual interest rate is 5.5 percent. How much money must you deposit in account each year to fund your children’s education? Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume four years of college
In the case of military service it goes without question that serving is a privilege and a honor for those that decide to serve. However, the question I would like to know is, should we change the way we recruit troops? In saying that and going back to the case study, Sandel presents different ways of military recruitment. The first way of recruitment was by forcing people to serve, the draft. An old tactic that was used years ago in my opinion placed people in positions of being vulnerable and sad because their lives were controlled by people of higher power. The second way of recruitment still involved the draft concept, however it allowed for people to pay random replacements to fill in their spot in fighting in the war and joining the military. There are people that may agree to this
Both Blunt and Mathas knew this would be an uphill battle, however. Historically, investment advisors preferred to actively manage their clients’ funds, whereas an immediate annuity represented an irrevocable one-time transaction. In addition, most advisors favored a fee-based business model rather than one in which they would receive only a one-time commission. Complicating matters, research suggested that consumers were almost completely unaware of the existence or benefits of immediate annuities. Yet Mathas had faced doubts about this product before, and he genuinely believed that, in the ever-changing landscape of retirement planning, immediate annuities offered great benefits for those in or approaching their retirement years.