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5. Funding the nest egg shortiall Determining Retirement shortfall Yuan and Alex have 30 years to retirement. They are taking a personal finance course and

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5. Funding the nest egg shortiall Determining Retirement shortfall Yuan and Alex have 30 years to retirement. They are taking a personal finance course and have calciated 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 shartfali of 55,500.00 per year Use the following tabves to answer the questions about future valut inferest factors. The impact of the inflation factor Continuing their worksheet, they consuit a friend, economics professor Dr. Wo, who believes that they can expect the average annual inflistion rate to be 5%, pose bly 6 be tops: Complefe che following rable by calculating infliation-adjusted annual shortfan for roan and Alex at 5%. Then recaiculate the shortlail based on the top rate provided by or: Wh. The impact of the infiation factor Continuing their worksheet, they consuit a friend, economics professor Dr. Wu, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Complete the following table by caiculating infation-adjusted annual shortfall for Yuan and Alex at 5%. Then recalculare the shortfan based on the top rate provided by Dr. Wu. Funding the shortfall In addition to determining a realistic inflation rate, Yuan and Alex talked to thele financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 30 years, they can realistically earn 5% on their nest egg. Second, he recornmends an investment vehicle that is earning 6% annually. Complete the foviowing table using the inflation-adjusted annual shortall at 5% as previousily calculated. 5. Funding the nest egg shortiall Determining Retirement shortfall Yuan and Alex have 30 years to retirement. They are taking a personal finance course and have calciated 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 shartfali of 55,500.00 per year Use the following tabves to answer the questions about future valut inferest factors. The impact of the inflation factor Continuing their worksheet, they consuit a friend, economics professor Dr. Wo, who believes that they can expect the average annual inflistion rate to be 5%, pose bly 6 be tops: Complefe che following rable by calculating infliation-adjusted annual shortfan for roan and Alex at 5%. Then recaiculate the shortlail based on the top rate provided by or: Wh. The impact of the infiation factor Continuing their worksheet, they consuit a friend, economics professor Dr. Wu, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Complete the following table by caiculating infation-adjusted annual shortfall for Yuan and Alex at 5%. Then recalculare the shortfan based on the top rate provided by Dr. Wu. Funding the shortfall In addition to determining a realistic inflation rate, Yuan and Alex talked to thele financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 30 years, they can realistically earn 5% on their nest egg. Second, he recornmends an investment vehicle that is earning 6% annually. Complete the foviowing table using the inflation-adjusted annual shortall at 5% as previousily calculated

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