Assume you are 25 years old with two major financial goals:

• Starting your MBA at the age of 30 (5 years from today)
• Retiring at age 65 with a wage replacement ratio of 90%.

Your data includes:

• Income of $75,000
• You save 10% saving of your income for retirement and your average federal tax rate is 18% (this does not include social security and Medicare taxes).
• Life Expectancy of 95
• Inflation is expected to average 3.75% per year
• Tuition inflation is expected to average 5.5% per year
• Your Social Security at age 65 is expected to be $18,500 in todays dollar
• Intermediate-term invest expected return rate is 5.86%, Long-term invest expected return rate is 7.305%

1. Using the intermediate-term portfolio you created with the Vanguard funds, how much will you need to save every month from now until the start of your MBA to fund the 1-3 years of your MBA?
   1. As part of this, do some research on MBA programs. Complete the calculations based on two different programs. Include the details on the two programs.
   2. Assume you will pay for the program at the beginning of each year and assume that you want all of the funds in the account by the time you start the program. Use the expected return you calculated for this portfolio
2. Using the long-term portfolio you created with the Vanguard funds, how much will you need to save every month from now until 65 to achieve your retirement goal?
   1. As part of this, you will need to figure out how much you need by your retirement date. Use the expected return you calculated for this portfolio.