1.

Clients seeking retirement advice have come to you for help. They currently have $500,000 in their combined 401(k)s. They currently live on $75,000 a year and want to maintain that lifestyle throughout retirement. They plan on retiring 10 years from now and plan on being in retirement for 25 years. They are confident on earning 7% on the investments and expect inflation to run 3.5%. What separate monthly payment should they add to their retirement fund to meet their goals?

a. $4,717

B. $4,744

C.

$10,489

D. $10,550

2

Walter is planning to deposit $1,500 into a certificate of deposit at the end of each of the next six years. The deposits will earn 5% compound annual interest. If, instead, Walter were to make the five annual deposits beginning immediately, how would his account balance at the end of the sixth year be affected?

A. It would be $1,500 higher.

B. It would be 5% higher.

C. It would be 7% higher.

D.It would be $1,903 higher.

3.

Allison and Luke Smiths AGI is $250,000. Which of the following techniques should they use to save for their 8-year-old daughters college education?

		A. Coverdell ESAs
		B. Series EE bonds
		C. 2503(b) trust
		D. Crummey trust

4.

Evan and Ella want to fund their 6-year-old son Connors college education. The current cost of tuition is $12,000 per year and they expect it to increase 5% per year. They also anticipate earning 7% per year on their investments. Approximately how much do they need save at the end of each month to fund five years of college for Connor?

		A. $456
		B.$458
		C. $460
		D. $462