Retirement planning assignment

Assignment Help Financial Management

Reference no: EM131520393

Retirement Planning Assignment

At your age (assume 20) you can assume that you will live to be 100. If you graduate at 23 and start to work, you can expect to work for 47 years, until age 70. At that time you will be eligible for full Social Security benefits, which can reasonably be expected to be $3,000 per month, and which will be received monthly for the rest of your life. You can reasonably expect that your retirement savings will earn an average of 8 percent per year throughout the period that you accumulate your retirement funding and during your retirement years. Further assume that you will want to have an annual income of $120,000 throughout your retirement.

Ignoring inflation in all calculations, how much will you need to have saved at retirement in order to be able to fund your retirement?

How much will you have to save each year in order to fund this amount if you start at 23?

How much will you have to save each year in order to fund this amount if you start at 25?

How much will you have to save each year in order to fund this amount if you start at 30?

How much will you have to save each year in order to fund this amount if you start at 40?

Briefly explain how you think those funds should be managed. That is, suggest a reasonable overall plan to achieve your goal, using all of the tools we have considered throughout the course.

Reference no: EM131520393

Questions Cloud

What is internal rate of return : You buy a new piece of equipment for $28,192, and you receive a cash inflow of $4,500 per year for 16 years. What is the internal rate of return?

Compute and interpret the z-score for each firm : Compute and interpret the Z-score for each firm.

Improve its production efficiency : CSM Machine Shop is considering a four-year project to improve its production efficiency.

Coverage ratios as covenants are calculated using values : Coverage ratios as covenants are calculated using values from the _________.

Retirement planning assignment : Ignoring inflation in all calculations, how much will you need to have saved at retirement in order to be able to fund your retirement?

Compute distance to default and the probability of default : Compute the distance to default and the probability of default based on the KMV approach

About the mature manufacturing firm : Antiques R Us is a mature manufacturing firm. If you require a return of 12 percent on this stock, what will you pay for a share today?

What is effective cost of bank financing : What is the effective cost of bank financing if the loan amount is $100,000, interest is discounted (advance), a 1% commitment fee is paid up front,

Floor planning is best described : Floor planning is best described as

User Account

All Pages