Steven, age 43, earns $80,000 annually; and his wage replacement ratio has been determined to be 80%. He expects inflation will average 3% for his entire life expectancy. He expects to work until 68, and live until 90. He anticipates an 8% return on his investments. Additionally, Social Security Administration has notified him that his annual retirement benefit, in today’s dollars will be $26,000. Using the capital preservation model, calculate how much capital Steven needs, in order to retire at 68. A. $1,061,342.08. B. $154,974.9475. C. $1,217,311.57. D. $1,317,564.25.

Q: bob wants to retire in 10 years and then have enough money saved to withdraw $75,000 a year for 15…

A: The term "annuity" is a financial term that represents a series of cash flows for a specific period.…

Q: A manager retired at age 65, and has her retirement savings of $650,000 invested in a mutual fund…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: Magdalena, age 35, has $72,000 accumulated in savings. She projects she will save $23,000 a year…

A: The amount you can put back or invest each period, as well as the interest you earn on your savings,…

Q: Daniel knows that he can withdraw up to a maximum of $35,000 from his Registered Retirement Savings…

A: The minimum repayment amount is determined on the basis or proportion of actual withdrawal that is…

Q: Daniel Jackson is 30 years and wants to retire when he is 65. So far he has saved (1) $6,730 in an…

A: (1) Balance in IRA account=$6,730 Interest rate in IRA account=0.083   (2) Balance in money market…

Q: Kevin is planning for his retirement this year. One option that has been presented to him is the…

A: An annuity seems to be a financial instrument that pays out fixed amounts of money at regular…

Q: Several years ago John bought an endowment insurance policy that is about to mature. He has the…

A: given data   option 1 gives $20000 now  option 2 gives $40000 in 10 years  for option 2 we will…

Q: Despite his relative youth, Samuel Hunter has started planning for his retirement. At present, he…

A: Given:  Annual investment = $3,000  Period, n = 40 years  Interest rate, r = 4%    a.  The…

Q: wants to have ordan wants to retire in 15 years when he turns enough money to replace 75% of his…

A: Years of retirement15 yearsInterest rate0.06Growth in salary0.04Current Salary$100,000Replacement…

Q: How much must she invest  each month in mutual fund to ensure this standard of living? Assume that…

A: The time value of money can be explained as the foundational principle of finance which states that…

Q: Trevor plans to retire at age 62, and estimates that $55,200 a year in retirement for 33 years will…

A: The savings each month during the time when Trevor is working and the monthly money required during…

Q: Erin wants a monthly retirement income of $10,000. She will retire on her birthday at age 67 with a…

A: Retirement: It represents when an individual leaves the firm's workforce. The present value of the…

Q: Brian would like to retire in 10 years when he turns 62. Based on his family history, Brian expects…

A: Retirement planning is the process of determining financial and lifestyle objectives for one's…

Q: Bella is 23 years old and wants to invest money for her retirement. She wants to have $2,000,000…

A: The future value of an investment is the expected value of money that will be received after a…

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: Agnes is 40 years old. She wants to know how much she should be saving each year for retirement.…

A: The value of money changes over time. The future value of a present amount is calculated by using an…

Q: n Cooper is 27 years old and is considering a monthly savings plan for his retirement. He plans to…

A: There should be planning for retirement and that should be based on needs and time value of money.

Q: An individual is considering contributing $4,000 per year to either a traditional or a Roth IRA.…

A: Roth IRA:A Roth IRA is a retirement account that allows individuals to contribute after-tax income,…

Q: Mr. Smith is 35 years old. He has the following 2 goals: First goal: To retire when he is 60 years…

A: Age Year in retirement Withdrawal Present Value = Withdrawal/ (1+interest%)^Year Working 60 0…

Q: Thomas Finley wishes to become a millionaire. His money market fund has a balance of $183,204 and…

A: A money market fund is mutual fund that invests in liquid financial instruments. These instruments…

Q: f Danny plans to retire at age 65, and will therefore make 45 payments into the fund, how much is…

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: Van, age 40, is starting his savings plan this year by putting away $2,200.00 at the end of every…

A: Future value It is a value that a person will receive in the future on an investment that is done…

Q: John is saving for retirement at age 65. He doesn't know if he should save in three large lumps…

A: In the given question we need to calculate the future value of investment at retirement age of 65…

Q: Ryan wants to retire in 10 years when he turns 65 but has determined he will need $1,000,000 to quit…

A: We need to use future value and future value of ordinary annuity formula to calculate value of of…

Q: When Joe graduated from college at age 22, his grandparents established a trust fund and endowed it…

A: Future value is the value of annuity at the end of a defined period. This can be calculated by…

Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.