Peter and Paula are married. Paula earns $60,000 per year and Peter is currently staying home with the two children. She contributes 10% of her salary to her retirement plan. In addition her employer makes a 4% matching contribution. Peter contributes $6,000 a year to an IRA. What is their total saving rate?
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- Susan's annual salary is $50,000. She contributes 10% of her salary to her 401(k) plan; and her employer contributes 6% of her salary to a profit sharing plan. She also contributes $3,000 per year to an IRA. What is Susan's approximate savings rate?Asha feels she needs $45,000 per year in retirement. If she receives $30,000 a year from Social Security , at what interest rate must Asha invest her $25,000 of savings for her total income to be at least $45,000 per yearThe Ali plan to retire and start receiving their Social Security benefits at the same time, when Jimmy is 67 and Lucy is 62 years old. Their monthly Social Security retirement benefits at those ages in today's dollars are estimated to be $3,200 for Jimmy and $2,000 for Lucy. They think their expenses in retirement in today's dollars will be 70% of their total cash outflows now. Other than Social Security, they will rely on their retirement savings in order to meet their retirement expenses. They want to assume they will die in the same year, when Jimmy is 95 and Lucy is 90 years old.Determine what the payments will be in the distribution phase. These will be the withdrawals Jimmy and Lucy will need to take monthly from their accounts, in order to meet their retirement expenses. How much is that monthly amount?Note: this question is asking about the withdrawals they will need, not about the expenses they will be incurring monthly.
- Over the years, Ahmed and Aamina El-zayaty, of Berkeley, CA,desire an annual retirement income of $200,000 in their employer-sponsored retirement plans. Given that their parents all lived to be in their 90s, they each expect to live for 30 years past retirement. If the couple could earn 3 percent after-tax and after-inflation rate of return on their investments, what amount of accumulated savings and investments would they need?Suppose Gretchen's health insurance has a $500 annual deductible. Gretchen is responsible for 20 percent co-pay when she meets her deductible. If Gretchen has $800 in medical expenses this year, how much must she pay?Daniel knows that he can withdraw up to a maximum of $35,000 from his Registered Retirement Savings Plan (RRSP) under the Home Buyers Plan (HBP). He knows that he has to pay at least 1/15th of the amount that he borrows. Danieľ's RRSP market value is $45,680 on the day that he decides to withdraw $25,700 under the HBP for the down payment on his new home. What is the minimum annual amount that Daniel must repay to his RRSP on the amount he withdraws from the HBP? A $3,045.33 В $2,333.33 $5,000.00 D $1,713.33 E $3,433.33
- Fatima recently set up a tax-deferred annuity to save for her retirement. She arranged to have BD 110 taken out of each of his monthly checks; it will earn 2% annual interest. She just had her 23 birthday, and her ordinary annuity comes to term when she is 69. Find the following: a. Find the future value of Fatima’s annuity. b. Find Fatima’s total contribution to the annuity. c. Find the total interest earned on the annuity. Note: I need a 100% correct answer with the steps pleaseErika and Kitty, who are twins, have just received $30,000 each for their 25th Each sister plans to make a $5,000 annual contribution to her retirement fund on her birthday, beginning a year from today. Erika opened an account with a fund that provides a 6% return per year. Kitty invested in fund that provides a 20% return per year. How old will each sister be when she becomes a millionaire? How large should Erika’s annual contributions have to be for her to become a millionaire at the same age as Kitty?Laura and Alan are a young married couple with three small children. Alan earns $60,000 a year, but Laura has no earned income. What is the maximum total contribution Laura and Alan can make to their IRA accounts in 2022? $5,500 $12,000 $6,000 O $14,000 O $7,000
- Isabelle wants to save for retirement. She earns $5400 in income each month, and wishes to deposit 10% of her income into a savings acount each month. If the savings account has a nominal interest rate of 7%, compounded monthly, how much will be in the account if she retires in 35 years? John won a lottery. After taxes, he was able to take home his winnings worth $510000. He decides to deposit 20% of this in a separate savings account for retirement. If the savings account has a nominal interest rate of 7%, compounded monthly, how much will be in the account if he retires in 35 years?Bertha and Martha are twins, and just graduated from college. They plan to retire in 40 years. To that end, each has a 401-k tax-advantaged retirement account. Martha contributes $1,000 per month only for the first five years. Bertha does not contribute during the first 20 years but contributes $2,500 per month during the last 20 years. 14) How much would Martha’s account hold at retirement if she earned an annual rate of 11.5%? A) $3,347,918.85 B) $1,940,849.36 C) $2,999,789.12 *D) $4,425,537.6. First compute the FV of the 60-month annuity and then compound the lump-sum for the next 420 months. Use a periodic rate. 15) 15) How much would Bertha’s account hold at retirement if she also earned an annual rate of 11.5%? A) $3,350,918.25 *B) $2,312,752.65 C) $1,978,400.10 D) $2,711,542.16. Please show the work step by step through financial calculator.Peter is 65 years old and has just attended his retirement party. He has amassed $1.50 million in retirement savings. He and his spouse have figured out that during retirement, they need to withdraw $100,000 at the end of each year from their retirement savings to maintain the standard of living that they would like to have. If they can earn 5% interest on the unspent balance in their retirement account, how many years will it be before their retirement savings are exhausted? O O 3 30 28 32 24 26 44 % 5 MacBook Pro (0 √ 2⁰ 00 * 8