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4. Your client, Tom is 43 years old, and has requested that you assist with his retirement planning for age 60 . i. The projected
4. Your client, Tom is 43 years old, and has requested that you assist with his retirement planning for age 60 . i. The projected fund value of his pension fund at retirement is R11 million. The current contributions to the pension fund is 14% of his current salary. ii. He has a share portfolio with a current value of R500 000 that is expected to grow at 9% p.a. The capital must be used for retirement planning. iii. His salary of R700 000 per annum is expected to increase at 6% per annum. iv. At retirement he wants to receive 55% of his final salary for 25 years. This income must increase at 6% per annum. v. Tom also wants to cater for a R300 000 emergency fund at retirement. Assume an investment return of 9% before and after retirement. Show all calculations and round off calculations to two decimal spaces. a. Calculate the capital shortfall at Tom's retirement
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