Assessment activity: Chapter 14 - Planning for Retirement Projecting Retirement Income and Investment Needs Name(s): Alex and Jesse Date: May 2015 65,000.00 C. BN: 90 % 61,750.00 1,556.00 33,525.00 0.00 35,081.00 126,669.00 I. Estimated Household Expenditures in Retirement Approximate number of years to retirement Current level of annual household expenditures, excluding savings Estimated household expenses in retirement as a percentage of current expenses D. Estimated annual household expenditures in retirement (R x C) II. Estimated Income in Retirement E. Social Security, annual income F. Company/employer pension plans, annual amounts G. Other sources, annual amounts Total annual income (E+F+G) Additional required income, or annual shortfall (D - H) III. Inflation Factor Expected average annual Inflation rate over the period to retirement K. Inflation factor (a) Years to retirement (A) Kb) Average annual inflation rate () Size of Inflation-adjusted annual shortfall IV. Funding the Shortfall Anticipated return on assets held after retirement Amount of retirement fund required (your nest egg) Expected rate of return on investments prior to retirement Compound interest factor (a) Years to retirement (A) (b) Expected rate of return on investments prior to retirement (0) Annual savings required to fund retirement nest egg 6% 1.500 128.269.14 89 1353,364.14 5.9%) TONER