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7. The Browns (Megan's aunt and uncle both age 52) have asked Megan for help in determining how much they should be saving for their
7. The Browns (Megan's aunt and uncle both age 52) have asked Megan for help in determining how much they should be saving for their retirement. One of Margaret and Bob Brown's long-term goals is to retire in 15 years when Bob is 67 and live until 97. Their current living expenses are approximately $100,000 (excluding savings), but they feel they would be able to live during retirement on about 90% of their current living expenses. Assuming they continue to work for their current employers, they expect to receive approximately $2,300 a month from Bob's retirement plan and about $1,200 a month from Margaret's employer plan. They estimate Bob's monthly Social Security benefit would be $1,200 and Margaret's would be $900. Calculate Bob and Margaret's retirement income and investment needs for life assuming an average rate of inflation of 3%, 7% return on investments after retirement, and 9% return on investments prior to retirement. Use both Annuity and Capital preservation model approach. 30 pts 8. Since Kevin and Megan has not done any estate planning yet. As a Financial Planner what basic estate planning document would you recommend them to get started with? 5 pts
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