An individual has determined utilizing the annuity method of capital needs analysis that he needs $1,045,656 at the beginning of his retirement to meet his retirement life expectancy goals. If this individual would like to be more conservative in his retirement planning forecast and maintain this capital balance throughout his retirement life expectancy of 32 years, given an expected earnings rate of 6%, and an inflation rate of 3% during the period, how much more would he need to have at the beginning of his retirement?

Q: Claire Fitch is planning to begin an individual retirement program in which she will invest $2,800…

A: Payment = p = $2800Time = t = 30 yearsRate of return = r = 8%

Q: Your client, Tom, has come to you inquiring about retirement. He wants to know approximately how…

A: Given: Annual retirement amount “PMT” = $182365 Number of years post retirement = 90-64 = 26 Nominal…

Q: Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25…

A: To calculate how much your father must save during each of the next 10 years to meet his retirement…

Q: Given the following data: post -retirement contribution   Annual contribution : 7500   tax…

A: The annual contribution will be a form of annuity wherein an equal amount is paid each period.

Q: John and Mary as a couple wish to contribute a decent percentage of their earnings into individual…

A:

Q: An Investor started saving for retirement today and plans to make annual contributions into her…

A: Delaying retirement by one year offers a significant advantage in bolstering the total amount in the…

Q: Although Joe is interested in the defined benefit offered by UM, he would also like to consider…

A: Lump sum amount is calculated as the present value of annual defined benefit using following…

Q: If you wait until you're 45 to begin investing for retirement, you'll need to invest $2,153 per…

A: we will assume that retirement age is 60. to find the rate we will use the 'RATE' function in excel.…

Q: Lillian Coleman is 21 years old and has just graduated from college. In considering the retirement…

A: Inflation refers to the continuous rise in price level. It erodes the buying power of money.…

Q: Suppose that your friend has a farm in 2019 and wants to make an investment 150,000 in 2030 for all…

A: Future Investment = 150,000 Time duration = 2030-2019 = 11 years

Q: 9. Implied interest rate and period Consider the case of the following annuities, and the need to…

A: Present Value is calculated by dividing the future value by the 1+r factor for the given required…

Q: Gail Trevino expects to receive a $500,000 cash benefit when she retires five years from today. Ms.…

A: This question relates to the application of time value of money. We will compute the present value…

Q: effect of long-term inflation on meeting retirement financial planning goals.

A: Retirement Planning is a plan for having sufficient income after retirement. In this plan, a certain…

Q: Mr. Peter Phang, aged 35, is planning to retire at age 55. He understands from his advisor that he…

A: We need to use future value of annuity formula to calculate yearly payment to achieve goal of…

Q: Claire Fitch is planning to begin an individual retirement program in which she will invest $2,200…

A: The future value of an investment forecasts the expected value of an investment at a given future…

Q: Financial planners (and engineering economists) unanimously encourage people to start early in…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: A couple will retire in 40 years; they plan to spend about $21,000 a year (in current dollars) in…

A: Annual savings refers to an amount that is kept aside or invested in some plan for the purpose of…

Q: Suppose that you earn $50,000 annually. You expect expenses to drop by 22% for your family in the…

A: If you die you want to provide your family with = 50000 - 0.22*50000 = 39000$39000 every year for 15…

Q: Samuel Survivor is planning to save for retirement 35 years from now. He expects to live 25 years…

A:

Q: Second Best Insurance company is advertising a new product to retirees looking to invest their…

A: NPV refers to net present value. It is an important capital budgeting tool. Essentially NPV is the…

Q: A 40-year-old woman decides to put funds into a retirement plan. She can save $1,000 a year and earn…

A: We need to calculate the persent value of annuity  by using this formula.    PV of annuity =CF*…

Q: If the future income tax rate at retirement (end of year 30) is 30%: 1)What is FW or Roth IRA?…

A: =Yearly investmentInterest rate[(1+interest rate)time period-1] =$1,4400.08[(1+0.08)30-1]…

Q: In our prior example, you need to have about $4,000,000 in savings at the age of 60 to fund…

A: Present value is the concept in finance that suggests the worth of a future cash flow, assuming it…

Q: For investment advisors, a major consideration in planning for a client in retirement is the…

A: Part 2: Explanation:Step 1: Calculate the inflation-adjusted withdrawal for each year leading up to…

Q: Assuming that she is expected to retire at the 60, what is the discounted value of her lifetime…

A: Information Provided: Discount rate = 3% Growth rate = 2% Annual income = $50,000 Number of periods…

Q: I am currently 42. If you are going to retire at 65, post-retirement living expenses are $20,000…

A: Time Value of money: The time value of money (TVM) theory states that because of its potential for…

Q: inflation-adjusted lifestyle of $188,000 a year for all 28 years, the client's investments would…

A: Investment is the amount which is spent by the producer for the purchase of those goods which…

Q: Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25…

A: An annuity is a series of payments that are all the same size and are made at regular intervals over…

Q: Considering the information obtained in questions 2, should Bill wait until age 67. for his Social…

A: The solution is as follows:

Q: What would the the comuted value of the defined benefit pension plan be in the following example?…

A: To calculate the computed value of Frank's defined benefit pension plan, we need to consider several…

Q: Mr. Partho, who is 30 years old, has approached a financial planner for analysis of his retirement…

A: Inflation can be defined as the rise in general price level in an economy. When inflation is there,…

Q: Mr. Clifton Chen, aged 39, recently purchased an endowment plan from an insurer that requires him to…

A: Annuity payments :It is a number of periodic payments made to an individual over a fixed period of…

Q: 30.A financial product that pays out a fixed stream of payments to an individual, primarily used as…

A: A financial product is a tool that allows a person to do one of the following: make a monetary…

Q: It is with deep regret that I inform you that your rich uncle just passed away. His money is tied up…

A: We need to calculate present value of 20000 which will you received in 5 years to compare to present…

Q: I am 40 years old. If you are going to retire at 65, post-retirement living expenses are $20,000…

A: The PV of an investment refers to the combined value of its cash flows after they have been…

Q: Maryam's retirement scheme is in such a way that for the present year, she invests QR 250,000 (as…

A: The problem case wants to calculate the interest rate earned by the depositor over the period of…