1. Tammy is considering retiring at age 57 and beginning her pension plan payouts now (instead of waiting until they would normally begin at age 65). She will receive 73% of her normal scheduled payout if she starts now. Her level payout at age 65 is scheduled to be $7,000 per month. How much will she receive is she starts the payouts today?

2. Gino has an IRA with a balance of $600,000. He also cash in his savings account of $200,000. Gino is in the 24% marginal tax bracket. If Gino converts his IRA to a Roth IRA, what will his total spending power be (including his savings account) after the transaction?