If you will live for X years after retirement and the estimated return for your investment portfolio is 5% annually at that time, how will you decide your retirement plan? form your portfolio by selecting funds from either “Fidelity 401(k) plan” or “Hines 401(k) plan” and allocating your assets, and to evaluate your possible returns and risk.
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If you will live for X years after retirement and the estimated
form your portfolio by selecting funds from either “Fidelity 401(k) plan” or “Hines 401(k) plan” and allocating your assets, and to evaluate your possible returns and risk.
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- Use Excel to solve the following problem. Assume that you are 39 years old planning for your future retirement at age 65. You think that you will be comfortable living on the proceeds from a $1,000,000 401K Retirement Account.a. If your investments grow at an average rate of 6% annually how much must you invest monthly to achieve your projected retirement fund total by the time you retire in 26 years?b. Assuming that when you do retire, you will re-direct your $1,000,000 investment portfolio into less volatile and more secure mutual funds. You expect that, invested in these sources, your portfolio will securely earn 4.5% annually. Based on your assumptions and the normal life expectancy of an American male or female (I determined this to be 81 years old), without consuming any of your principal, how much money will you have on a monthly basis to support your life?(I have worked this problem out on my own, I just want to be sure I applied the formulas and concepts correctly.)Pick a target retirement age. It can be any age you want. Using your real life current age, and your target retirement age, how much would you need to invest each month in order to reach $1,000,000 by the time you want to retire. Assume you can earn 12% APY on your investing and you have $0 now. You can use annual values for APY and PMT to solve this. If you had $1,000,000 and you wanted to live until age 100, how much could you spend each year, starting from your target retirement age, and spending the same amount each year until age 100? Assume your savings will earn 4% APY after you retire, and you will have nothing left at the end.Now consider your financial objective is to save $500,000 for preparing your retirement, assuming 30 years from now. If you invest your RRSP savings in a mutual fund which can realize an average return of 10% per year. To achieve your goal, how much do you need to save at the end of each year over the 30-year period? a. 4,039.26 b. 3,039.62 c. 2,985.54 d. 10,988.32 What is the FV of $100 deposited today into an account with an APR 12.6%, compounded semiannually for 10 years? a. 1478.96 b. 3460.06 c. 327.63 d. 339.36 A car dealer offers payment of $525.32 per months for 60 months on a $30,000 car after making a $5000 down payment. What's the loan's APR? a. 10.4798% b. 9.5224% c. 1.9609% d. 0.7935%
- You are targeting a retirement portfolio value of $1,700,000 in 25 years. You plan to make annual payments at the end of each of those years. You expect your investments to earn an annual return of 7.50% per year. What should your annual payment be to achieve your retirement target? Group of answer choices $26,258.55 $35,011.40 $25,008.14 $23,263.39 $30,009.77You just had your 30th birthday and you are planning for your retirement at age 66. You currently have $20,000 in your investment portfolio, and you estimate that you will need at least $1.5 million in order to retire comfortably when you turn 66. What rate of return must be earned on your investment portfolio (assuming that you do not add any more money into the account) for your retirement plan to work? Show me all the calculation processAssume that you are 39 years old planning for your future retirement at age 65. You think that you will be comfortable living on the proceeds from a $1,000,000 401K Retirement Account.Assuming that when you do retire, you will re-direct your $1,000,000 investment portfolio into less volatile and more secure mutual funds. You expect that, invested in these sources, your portfolio will securely earn 4.5% annually. Based on your assumptions and the normal life expectancy of an American male or female (respective to yourself), without consuming any of your principal, how much money will you have on a monthly basis to support your life?
- You are targeting a retirement portfolio value of $2,500,000 in 20 years. You plan to make annual payments at the end of each of those years. You expect your investments to earn an annual return of 4.00% per year. What should your annual payment be to achieve your retirement target? (Ch. 5) Group of answer choices $88,152.09 $100,745.25 $117,536.13 $80,725.36 $83,954.38Suppose you are planning for retirement. At thebeginning of this year and each of the next 39 years,you plan to contribute some money to your retirementfund. Each year, you plan to increase your retirement contribution by $500. When you retire in 40years, you plan to withdraw $100,000 at the beginning of each year for the next 20 years. You assumethe following about the yields of your retirementinvestment portfolio:■ During the first 20 years, your investments willearn 10% per year.■ During all other years, your investments will earn5% per year.All contributions and withdrawals occur at thebeginnings of the respective years.a. Given these assumptions, what is the least amountof money you can contribute this year and stillhave enough to make your retirement withdrawals?b. How does your answer change if inflation is 2%per year and your goal is to withdraw $100,000 peryear (in today’s dollars) for 20 years?There are two investment options available for you. The first option requires you to invest 5,000$ in 1 year with 7% interest rate and collect your return in year 27. Second option requires you to put 500$ today with 11% interest rate and collect the fund in year 65. What is the compounding effect combination of these two investments? Select one: a.470,570 b.410,795 C.490,510 d.465,070
- Future value of a portfolio. Rachel and Richard want to know when their current portfolio will be sufficient for them to retire. They have the following balances in their portfolio: Money market account (MM): $37,000 Government bond mutual fund (GB): $150,000 Large capital mutual fund (LC): $103,000 Small capital mutual fund (SC): $76,000 Real estate trust fund (RE): $88,000 Rachel and Richard believe they need at least $1,900,000 to retire. The money market account grows at 2.0% annually, the government bond mutual fund grows at 5.5% annually, the large capital mutual fund grows at 8.5% annually, the small capital mutual fund grows at 12.0% annually, and the real estate trust fund grows at 3.5% annually. With the assumption that no more funds will be deposited into any of these accounts, how long will it be until they reach the $1,900,000 goal? Rachel and Richard will need to invest their accounts for or more years to reach $1,900,000. (Round to the nearest whole number.)Your friend has a trust fund that will pay her the following amounts at the given interest rate for the given number of years. Calculate the current (present) value of your friends trust fund payments. For further instructions on future value in Excel, see Appendix C.Future value of a portfolio. Rachel and Richard want to know when their current portfolio will be sufficient for them to retire. They have the following balances in their portfolio: Money market account (MM): $37,000 Government bond mutual fund (GB): $145,000 Large capital mutual fund (LC): $105,000 Small capital mutual fund (SC): $74,000 Real estate trust fund (RE): $85,000 Rachel and Richard believe they need at least $1,700,000 to retire. The money market account grows at 2.5% annually, the government bond mutual fund grows at 5.0% annually, the large capital mutual fund grows at 9.5% annually, the small capital mutual fund grows at 14.0% annually, and the real estate trust fund grows at 3.0% annually. With the assumption that no more funds will be deposited into any of these accounts, how long will it be until they reach the $1,700,000 goal? Rachel and Richard will need to invest their accounts for whole number.) or more years to reach $1,700,000. (Round to the nearest