10. with a traditional tax shelter (spreadsheet 21.5) compare the effect on a real consumption during retirement of a 1% increase in the rate of inflation to a 1% increase in a tax rate.

12. verify that the traditional tax shelter with a progressive tax (spreadsheet 21.7) acts as a hedge. compare the effect of a decline of 2% in the ROR to an increase of 2% in ROR.

31 v E 13 A. El [2: D E F G H Retirement Years Income growth Rate oflnation Exemption 0 Tax Rate Saving rate RDR rRDR 25 {1.07 {1.113 15000 {1.25 {1.15 {1.06 {1.0291 Umulati'u'e SEM'H_ Retirement Years 3D 31 35 45 55 55 Total RETIREMENT 50000 53500 70320 133052 273372 533020 N 0 m With draw Exempti0n 0022 10724 14500 31105 53205 135007 0022 23242 03520 433234 3303550 3752055 Fundleft 33053 33224 41,310 53054 01773 113355 rC0nsumpti0n 223420 243005 207500 333405 303500 440050 43474 43031 53724 53750 73232 03374 1012020 3753313 3720057 3453127 2053737 3773517 0 53700 53700 53700 53700 53700 53700 A1 V E f;- Retirement 'r'ears A E C D E F G H Retirement Years Income growth Rate oflnation Exemption r1- Tax rates in Saving rate RDR rRDR 25 {111? {1.03 13333 Table 21.1 {1.15 {1.06 {1.11291 umulative SEwin_ 30' 50,000 9,150 9,150 35,?00 31 53,500 9,880 19,590 36,958 35 TUJEB 13,554 T1112 42,252 45 13?,952 33,830 434,915 5T,333 55 2T1,3T2 T2385 1,455,451 79,076 55 533,829 179,359 4,125,524 104,970 43 33 241,333 2.33 23,333 43,311 4,131,333 33,333 4? "m 2T1,QBB 3.23 32,323 55,533 4,333,331 33,333 32 75 313,333 3.73 3?,313 34,343 3,733,333 33,333 5? 33 335,523 4.33 43,333 T4333 3,131,333 33,333 32 35 423343 3.33 53,321 33.43? 1,345,433 33,333 67' 33 431,241 3.33 53,313 133,233 3 33,333 58 Total 8,310.5?"0 139?,343