5. Funding the nest egg shortfall Determining Retirement Shortfall Rodrigo and Jesse Have 35 years to retirement. They are taking a personal Finance course and have calculated their projected retirement income and Investment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of $5,500.00 per year Une the following tables to answer the questions about future value interest factors, Interest Pacion-Future Value Interest Factons Future Value of an Annuity 8.00% 9.00% Periods 20 4.661 5.00% 6.00% 2.653 3.210 3.386 4.290 3.00% 1.810 2.090 2.420 5.600 25 6.848 8.620 30 4.322 5.740 13.260 10.062 14.785 35 5.516 2.810 3.260 7.690 10.280 20.410 31.410 40 7.040 21.724 The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Blakely, who believes that they can expect the average annual inflation rate to be 5. possibly 6% tope. Complete the folowing table by calculating inflation-adjusted annual shortfall for Rodrigo and Jesse at 5%. Then recalculate the shortfall based on the top rate provided by Dr. Blakely wing the nest egg shortfall Determining Retirement Shortfall Rodrigo and Jesse have 3 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and Investment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of $5,500.00 per year Use the following tables to answer the questions about future value interest factors Urteret Faders-Future Value Interest Facing-Future Value of an Aminuty Periods 6.00% 8.00% 20 36.780 45.762 3.00% 5.00% 26.870 33.006 36.460 47.726 47.570 66.438 25 73.105 9.00% 51.160 84.700 136.300 215.700 337.670 54.860 79.060 111.430 154.760 30 35 60.460 90.318 120.797 113.282 172.314 259.052 40 75.400 The impact of the inflation factor Continuing their worksheet, they consult a friend, economies professor Dr. Blakely, who believes that they can expect the average annual inflation rate to be 54. posibly 6 tops. Complete the following table by calculating inflation-adjusted annual shortfall for Rodrigo and Jesse at 5%. Then recalculate the shortfall based on the toe refe provided by Dr. Bakely Continuing the worksheet, they consulta ed economics professor Dr. Wakely, who believes that they can expect the average annustination rate to be possibly stops Complete the following table by calculating Wanion-busted annust shortfall for Rodrigo and Jesse at St. The rockwiate the shortfall based on the pre provided by Drake Interest rate Inflation-adjusted annual shortfall (Parcent) (Dollars) Funding the shortfall In addition to determining a realistic inflation rate, Rodrigo and Jesse talked to their financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 35 years, they can realistically earn on their nest ego. Second, he recommends an Investment vehicle that is earning 6% annually Complete the following table using the ination-adjusted annual shortfaw at 5% as previously calculated, Amount of retirement funds required (Dollars) Interest rate (Percent) 5 6 Description Amount of retirement fund required Annual savings required to fund nest egg Continuing their worksheet, they consult a friend, economics professor Dr. Blakely, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops Complete the following table by calculating inflation-adjusted annual shortfall for Rodrigo and Jesse at 5%. Then recalculate the shortfall based on the top rate provided by Dr. Blakely. Interest rate Inflation-adjusted annual shortfall (Percent) (Dollars) Funding the shortfall In addition to determining a realistic inflation rate, Rodrigo and Jesse talked to their financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 35 years, they can realistically earn 5% on their nest egg. Second, he recommends an investment vehicle that is earning 6% annually Complete the following table using the inmation-adjusted annual shortfall at 8% as previously calculated Interest rate (Percent) 5 Amount of retirement funds required (Dollars) Description Amount of retirement fund required Annual savings required to fund nest egg 6 5. Funding the nest egg shortfall Determining Retirement Shortfall Rodrigo and Jesse Have 35 years to retirement. They are taking a personal Finance course and have calculated their projected retirement income and Investment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of $5,500.00 per year Une the following tables to answer the questions about future value interest factors, Interest Pacion-Future Value Interest Factons Future Value of an Annuity 8.00% 9.00% Periods 20 4.661 5.00% 6.00% 2.653 3.210 3.386 4.290 3.00% 1.810 2.090 2.420 5.600 25 6.848 8.620 30 4.322 5.740 13.260 10.062 14.785 35 5.516 2.810 3.260 7.690 10.280 20.410 31.410 40 7.040 21.724 The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Blakely, who believes that they can expect the average annual inflation rate to be 5. possibly 6% tope. Complete the folowing table by calculating inflation-adjusted annual shortfall for Rodrigo and Jesse at 5%. Then recalculate the shortfall based on the top rate provided by Dr. Blakely wing the nest egg shortfall Determining Retirement Shortfall Rodrigo and Jesse have 3 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and Investment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of $5,500.00 per year Use the following tables to answer the questions about future value interest factors Urteret Faders-Future Value Interest Facing-Future Value of an Aminuty Periods 6.00% 8.00% 20 36.780 45.762 3.00% 5.00% 26.870 33.006 36.460 47.726 47.570 66.438 25 73.105 9.00% 51.160 84.700 136.300 215.700 337.670 54.860 79.060 111.430 154.760 30 35 60.460 90.318 120.797 113.282 172.314 259.052 40 75.400 The impact of the inflation factor Continuing their worksheet, they consult a friend, economies professor Dr. Blakely, who believes that they can expect the average annual inflation rate to be 54. posibly 6 tops. Complete the following table by calculating inflation-adjusted annual shortfall for Rodrigo and Jesse at 5%. Then recalculate the shortfall based on the toe refe provided by Dr. Bakely Continuing the worksheet, they consulta ed economics professor Dr. Wakely, who believes that they can expect the average annustination rate to be possibly stops Complete the following table by calculating Wanion-busted annust shortfall for Rodrigo and Jesse at St. The rockwiate the shortfall based on the pre provided by Drake Interest rate Inflation-adjusted annual shortfall (Parcent) (Dollars) Funding the shortfall In addition to determining a realistic inflation rate, Rodrigo and Jesse talked to their financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 35 years, they can realistically earn on their nest ego. Second, he recommends an Investment vehicle that is earning 6% annually Complete the following table using the ination-adjusted annual shortfaw at 5% as previously calculated, Amount of retirement funds required (Dollars) Interest rate (Percent) 5 6 Description Amount of retirement fund required Annual savings required to fund nest egg Continuing their worksheet, they consult a friend, economics professor Dr. Blakely, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops Complete the following table by calculating inflation-adjusted annual shortfall for Rodrigo and Jesse at 5%. Then recalculate the shortfall based on the top rate provided by Dr. Blakely. Interest rate Inflation-adjusted annual shortfall (Percent) (Dollars) Funding the shortfall In addition to determining a realistic inflation rate, Rodrigo and Jesse talked to their financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 35 years, they can realistically earn 5% on their nest egg. Second, he recommends an investment vehicle that is earning 6% annually Complete the following table using the inmation-adjusted annual shortfall at 8% as previously calculated Interest rate (Percent) 5 Amount of retirement funds required (Dollars) Description Amount of retirement fund required Annual savings required to fund nest egg 6