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- I am 40 years old. If you are going to retire at 65, post-retirement living expenses are $20,000 annual, an average annual market return of 6%, life expectancy of 90. How much do you need to save for your retirement? (Please use the TVM calculation to solve for this question, and your answers would be different because your age varies.)1. Assume that your father is now 50 years old, that he plans to retire in 10 years, and that he expects to live for 25 years after he retires-that is, until age 85. He wants his first retirement payment to have the same purchasing power at the time he retires as GH¢ 40,000 has today. He wants all of his subsequent retirement payments to be equal to his first retirement payment. (Do not let the retirement payments grow with inflation: Your father realizes that the real value of his retirement income will decline year by year after he retires.) His retirement income will begin the day he retires, 10 years from today, and he will then receive 24 additional annual payments. Inflation is expected to be 5% per year from today forward. He currently has GH¢ 100,000 saved up; and he expects to earn a return on his savings of 8% per year with annual compounding. To the nearest dollar, how much must he save during each of the next 10 years (with equal deposits being made at the end of each year,…How much would be the Additional Investments made in 2019?
- Below is the Old Age Security (OAS) pension recovery tax table (also known as the OAS clawback table). Use the following information to respond to Lionel's OAS question. Lionel is 75 years old and receives an OAS monthly pension of $778.45. As he is on a tight retirement budget, he is concerned about the OAS clawback. He knows that the clawback for repayment is 15% of the difference between his net income of $98, 459 and the minimum threshold amount. Lionel wants to know how much of his OAS that he would get to keep after the OAS clawback. Ignore taxes.Assume that you are 20 years old and started saving for retirement on January 1, 2022. You plan to retire on December 31, 2071, when you are 70 years old. There are 50 years from the time you started investing (saving) until you retire. You have no previous or other retirement savings when you start to save. Assume there are 365 days and 52 weeks in each year from 2022 to 2071. (Ignore leap years). Assume that taxes will not affect any of the amounts or your savings. You invest $300 at the end of each month into a retirement account paying 7% compounded monthly from January 1, 2022, until you retire. Show all work and answer the following questions: 1. Assuming no withdrawals or additional payments were made, how much money will be in your retirement account after 50 years? 2. Assuming you made all the monthly payments for 50 years, how much did you pay into your retirement account? 3. Assuming you made all the monthly payments for 50 years, how much interest did you earn over the 50…Assume that you are 22 years old and are started saving for retirement on January 1, 2022. You plan to retire on December 31, 2068, when you are 68 years old. There are 47 years from the time you started investing (saving) until you retire. You have no previous or other retirement savings when you start to save. Assume there are 365 days and 52 weeks in each year from 2022 to 2068. (Ignore leap years). Assume that taxes will not affect any of the amounts or your savings. You invest $50 at the end of each week into a retirement account paying 8.5% compounded weekly for 12 years starting on January 1, 2022. After 12 years, you do not make any more payments or withdrawals and leave the money in the retirement account until retirement. Show all work and answer the following questions: Assuming no withdrawals or additional payments were made, how much money will be in your retirement account after 12 years? After 12 years, how many years are left until you retire? Assuming you made all…
- 1. If you begin investing at age 25 instead of age 20, how much more do you need to invest per month to have $1M at retirement? 2. If you begin investing at age 45 instead of age 40, how much more do you need to invest per month to have $1M at retirement? Why is this amount so much greater than the difference between 20 and 25? 3. If you wait until you’re 45 to begin investing, how much money will you need to invest, just for retirement, per year? Why might this be difficult? 4. Using the data in graphs II and III, how much will most millennials need to begin investing, per month, in order to have $1M in retirement? Please, explain.If you net $14.25 per hour and work 40 hours a week, 4 weeks per month, and have monthly expenses of: rent $825.50, car payment $458.79, utilities $110, food $150, gas $105, phone $125.25, savings $225, and insurance $118.36, what do you have left to invest for your retirement?Discuss what you believe to be the real reason most 23 year olds are not saving for retirement. What do you think we can do to change this trend?
- In recent years, earned income has accounted for a growing amount of total retirement income. Question 5 options: True FalseHow much is the net income in 2021?Question 12 You save $1500 each year into a tax-deferred retirement account. If you are in a 25% tax bracket and itemize deductions on your tax return, how much will you save on your taxes each year? Your Answer: Answer
