A $38-$year$-$old civil engineer has been working at a construction firm for $15$ years. He is currently earning an annual salary of $$85,000,$ with the expectation that his salary will increase annually at the rate of inflation. Jordan and his spouse, Taylor, are both committed to ensuring a comfortable retirement but have yet to formalize a detailed savings and investment plan. They have no children and plan to remain in their current home, with the mortgage expected to be fully paid off by the time Jordan retires at age $63.$

Jordan realizes the importance of developing a solid retirement plan, especially as he considers various investment strategies and savings rates. He is contemplating two distinct investment portfolios:

$$ Portfolio A: $70\%$ invested in a diversified stock index fund $($modeled on the S&P $500)$ and $30\%$ in corporate bonds.

$$ Portfolio B: $50\%$ invested in a real estate investment trust $($REIT$)$ and $50\%$ in government bonds

Jordan realizes that the choice of investment strategy will significantly impact the growth of his retirement savings and, subsequently, the quality of life during his retirement years. He is particularly interested in evaluating the impact of saving $12\%$ and $18\%$ of his gross salary annually. Moreover, Jordan is considering how different withdrawal strategies will affect his retirement savings:

$1.$ Withdrawal Strategy $1$: Withdraw $4\%$ of his total savings in the first year of retirement, adjusting for inflation annually.

$2.$ Withdrawal Strategy $2$: Withdraw $5\%$ of his total savings in the first year, with similar adjustments for inflation thereafter.

Jordan wants to explore the sustainability of these strategies over various potential retirement durations: $20-,25-,$ and $30-$years post$-$retirement. He will base his planning on historical data for investment returns and inflation rates. Table $1$ in the appendix summarizes historical returns for the S&P $500,$ corporate bonds, REITs, and government bonds, as well as historical inflation rates.

Design a spreadsheet to estimate the impact on Jordan$$s retirement of decreasing his annual retirement savings by $10$ percent.

Table $1.$

$\backslash$table$[[$Year$,\backslash$table$[[$S&P $500$ Return$],[(\%)]],\backslash$table$[[$Corporate Bonds$],[$Return $(\%)]],$REIT Return $(\%),\backslash$table$[[$Government$],[$Bonds Return$],[(\%)]],\backslash$table$[[$Inflation Rate$],[(\%)]]],[1928,43\mathrm{.}81,1\mathrm{.}68,$N$/$A$,3\mathrm{.}3,-1\mathrm{.}14][1929,-8\mathrm{.}42,4\mathrm{.}2,$N$/$A$,4\mathrm{.}36,0][1932,-8\mathrm{.}19,11\mathrm{.}36,,5\mathrm{.}53,-10\mathrm{.}3][1933,49\mathrm{.}98,9\mathrm{.}71,$N$/$A$,3\mathrm{.}77,0\mathrm{.}51][1934,-1\mathrm{.}44,3\mathrm{.}44,$N$/$A$,4\mathrm{.}35,3\mathrm{.}14][1938,31\mathrm{.}12,2\mathrm{.}39,$N$/$A$,2\mathrm{.}88,-2\mathrm{.}8][1939,-0\mathrm{.}41,4\mathrm{.}01,$N$/$A$,2\mathrm{.}48,0][1940,-9\mathrm{.}78,3\mathrm{.}71,$N$/$A$,2\mathrm{.}42,0\mathrm{.}7][1941,-11\mathrm{.}59,2\mathrm{.}49,$N$/$A$,2\mathrm{.}19,9\mathrm{.}9][1942,20\mathrm{.}34,2\mathrm{.}96,$N$/$A$,2\mathrm{.}56,6\mathrm{.}11][1943,25\mathrm{.}9,3\mathrm{.}32,$N$/$A$,2\mathrm{.}46,3\mathrm{.}02][1944,19\mathrm{.}75,2\mathrm{.}97,$N$/$A$,2\mathrm{.}22,2\mathrm{.}3][1945,36\mathrm{.}44,2\mathrm{.}69,$N$/$A$,2\mathrm{.}13,2\mathrm{.}3][1951,24\mathrm{.}02,-0\mathrm{.}3,$N$/$A$,1\mathrm{.}85,6][1952,18\mathrm{.}37,1\mathrm{.}44,$N$/$A$,1\mathrm{.}94,0\mathrm{.}75][1953,-1\mathrm{.}21,0\mathrm{.}72,$N$/$A$,1\mathrm{.}83,0\mathrm{.}75],[1954,52\mathrm{.}62,0\mathrm{.}61,$N$/$A$,1\mathrm{.}96,-0\mathrm{.}75],[1955,31\mathrm{.}56,0\mathrm{.}7,$N$/$A$,1\mathrm{.}95,0\mathrm{.}38],[1956,6\mathrm{.}56,2\mathrm{.}12,$N$/$A$,2\mathrm{.}05,3\mathrm{.}01],[1957,-10\mathrm{.}78,2\mathrm{.}98,$N$/$A$,2\mathrm{.}2,3\mathrm{.}34],[1958,43\mathrm{.}36,1\mathrm{.}84,$N$/$A$,2\mathrm{.}11,1\mathrm{.}76],[1959,11\mathrm{.}96,-0\mathrm{.}3,$N$/$A$,2\mathrm{.}34,1\mathrm{.}5],[1960,0\mathrm{.}47,1\mathrm{.}7,$N$/$A$,2\mathrm{.}32,1\mathrm{.}46],[1961,26\mathrm{.}89,3\mathrm{.}45,$N$/$A$,2\mathrm{.}48,1\mathrm{.}07],[1962,-8\mathrm{.}73,5\mathrm{.}41,$N$/$A$,2\mathrm{.}46,1\mathrm{.}2],[1963,22\mathrm{.}8,1\mathrm{.}71,$N$/$A$,2\mathrm{.}42,1\mathrm{.}24],[1964,16\mathrm{.}48,1\mathrm{.}52,$N$/$A$,2\mathrm{.}45,1\mathrm{.}28],[1965,12\mathrm{.}45,2\mathrm{.}28,$N$/$A$,2\mathrm{.}45,1\mathrm{.}59],[1966,-10\mathrm{.}06,1\mathrm{.}79,$N$/$A$,2\mathrm{.}63,3\mathrm{.}01],[1967,23\mathrm{.}98,2\mathrm{.}52,$N$/$A$,2\mathrm{.}75,3\mathrm{.}05],[1968,10\mathrm{.}81,1\mathrm{.}99,$N$/$A$,2\mathrm{.}86,4\mathrm{.}19],[1969,-8\mathrm{.}5,2\mathrm{.}9,$N$/$A$,3\mathrm{.}32,5\mathrm{.}46],[1970,3\mathrm{.}56,16\mathrm{.}36,$N$/$A$,3\mathrm{.}86,5\mathrm{.}84],[1971,14\mathrm{.}31,7\mathrm{.}58,$N$/$A$,3\mathrm{.}73,4\mathrm{.}29],[1972,18\mathrm{.}98,4\mathrm{.}85,$N$/$A$,3\mathrm{.}79,3\mathrm{.}27],[1973,-14\mathrm{.}31,2\mathrm{.}1,$N$/$A$,4\mathrm{.}15,6\mathrm{.}18],[1974,-25\mathrm{.}9,-4\mathrm{.}15,$N$/$A$,4\mathrm{.}74,11\mathrm{.}03],[1975,37,7\mathrm{.}07,$N$/$A$,4\mathrm{.}64,9\mathrm{.}14],[1976,23\mathrm{.}83,16\mathrm{.}9,$N$/$A$,4\mathrm{.}61,5\mathrm{.}75],[1977,-7\mathrm{.}18,0\mathrm{.}9,$N$/$A$,4\mathrm{.}68,6\mathrm{.}5],[1978,6\mathrm{.}56,-2\mathrm{.}14,$N$/$A$,4\mathrm{.}61,7\mathrm{.}63],[1979,18\mathrm{.}52,-4\mathrm{.}18,$N$/$A$,4\mathrm{.}47,11\mathrm{.}22],[1980,32\mathrm{.}42,5\mathrm{.}9,$N$/$A$,4\mathrm{.}5,13\mathrm{.}55],[1981,-4\mathrm{.}91,5\mathrm{.}09,$N$/$A$,4\mathrm{.}38,10\mathrm{.}33],[1982,21\mathrm{.}55,42\mathrm{.}91,$N$/$A$,4\mathrm{.}45,6\mathrm{.}13],[1983,22\mathrm{.}56,0\mathrm{.}38,$N$/$A$,4\mathrm{.}43,3\mathrm{.}21],[1984,6\mathrm{.}27,8\mathrm{.}81,$N$/$A$,4\mathrm{.}23,4\mathrm{.}29],[1985,31\mathrm{.}73,22\mathrm{.}47,$N$/$A$,4\mathrm{.}18,3\mathrm{.}56],[1986,18\mathrm{.}67,11\mathrm{.}57,$N$/$A