B B1. Create an estimated retirement budget using a compound interest inflation rate of 3%. 1 Estimate a retirement date based upon your projected retirement date i.e. 2050, 2055, 2060, etc. Using the monthly spending projections, you estimated in number 3.0 above, redraw your budget (both inflows and outflows) with the adjustments for inflation at 3% compounded annually to the year you plan to retire. (Show your formula or calculator calculations) 2. Reflect on your findings regarding the impact on inflation as it relates to your income requirements and as it relates to you projected expenditures. (1-paragraph minimum) 3. Comment on which expenditure categories may increase/decrease upon your retirement. (One paragraph minimum) 4. Reflect on the effect your projected expenditures on you retirement planning? (One Paragraph minimum) B2. Annualize the projected retirement budget. 1. Multiply each monthly income and monthly expense category you created in 4.0 above by 12, to annualize your retirement budget. B3. Calculate Income and expenses for each year of retirement. 1. Calculate projected income requirements and expenses for each year of retirement by adding 3% (estimated inflation rate) annually to the estimated annual income and annual expenses that you calculated for the year of your retirement. Do this for each of the 30-years of retirement. Add 3% to each year of retirement. This means you will have projections for income and expenses for each of the 30-years. 2. Reflect on the challenges of overcoming inflation at 3% during your working years. Comment on the impact of inflation. (Two paragraph minimum)
B B1. Create an estimated retirement budget using a compound interest inflation rate of 3%. 1 Estimate a retirement date based upon your projected retirement date i.e. 2050, 2055, 2060, etc. Using the monthly spending projections, you estimated in number 3.0 above, redraw your budget (both inflows and outflows) with the adjustments for inflation at 3% compounded annually to the year you plan to retire. (Show your formula or calculator calculations) 2. Reflect on your findings regarding the impact on inflation as it relates to your income requirements and as it relates to you projected expenditures. (1-paragraph minimum) 3. Comment on which expenditure categories may increase/decrease upon your retirement. (One paragraph minimum) 4. Reflect on the effect your projected expenditures on you retirement planning? (One Paragraph minimum) B2. Annualize the projected retirement budget. 1. Multiply each monthly income and monthly expense category you created in 4.0 above by 12, to annualize your retirement budget. B3. Calculate Income and expenses for each year of retirement. 1. Calculate projected income requirements and expenses for each year of retirement by adding 3% (estimated inflation rate) annually to the estimated annual income and annual expenses that you calculated for the year of your retirement. Do this for each of the 30-years of retirement. Add 3% to each year of retirement. This means you will have projections for income and expenses for each of the 30-years. 2. Reflect on the challenges of overcoming inflation at 3% during your working years. Comment on the impact of inflation. (Two paragraph minimum)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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B1. Create an estimated retirement budget using a compound interest inflation rate of 3%.
1 Estimate a retirement date based upon your projected retirement date i.e. 2050, 2055, 2060, etc. Using the monthly spending projections, you estimated in number 3.0 above, redraw your budget (both inflows and outflows) with the adjustments
for inflation at 3% compounded annually to the year you plan to retire. (Show your formula or calculator calculations)
2. Reflect on your findings regarding the impact on inflation as it relates to your income requirements and as it relates to you projected expenditures. (1-paragraph minimum)
3. Comment on which expenditure categories may increase/decrease upon your retirement. (One paragraph minimum)
4. Reflect on the effect your projected expenditures on you retirement planning? (One Paragraph minimum)
B2. Annualize the projected retirement budget.
1. Multiply each monthly income and monthly expense category you created in 4.0 above by 12, to annualize your retirement budget.
B3. Calculate Income and expenses for each year of retirement.
1. Calculate projected income requirements and expenses for each year of retirement by adding 3% (estimated inflation rate) annually to the estimated annual income and annual expenses that you calculated for the year of your retirement. Do this
for each of the 30-years of retirement. Add 3% to each year of retirement. This means you will have projections for income and expenses for each of the 30-years.
2. Reflect on the challenges of overcoming inflation at 3% during your working years. Comment on the impact of inflation. (Two paragraph minimum)
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