2 3 B. Mr. Rodriguez has been saving 12% of his salary of $15,000 for retirement over the past 15 years Initially, he planned to invest all of his money in medium-risk stock mutual funds which have an annual inflation-adjusted, return of 10%. First, how much money has he saved up so far (use monthly compounding and payments) N HY PV PMT FV Mr. Rodriguer wants to have $1.5 million saved up the day he retires. If he has 20 years left until retirement, is he on track? Show your work below N WY PV PMT FV Suppose Mr. Rodriguez wants to take a little less risk, so he is now splitting his money between a bond mutual fund and a stock mutual fund. This change will lower his return to an average of 7% How much will he have in retirement at this rate, given what he has saved and earned so far? IN WY PV PMT FV Clearly, Mr. Rodriguez needs to save more money to reach his retirement goal. How much more as a percentage of his salary does he need to save? N WY PV PMT FV What percentage of his salary is this monthly payment, ignoring taxes? 4. Most wealth advisors recommend reducing your investment risk as you move closer to retirement What advice would you give the individual in the previous problem about when it would be a good idea to begin investing in safer asset classes