Case 1 Example:

ALL WORK MUST BE SHOWN FOR CREDIT!

Client Name Joe Slick Age 24

years until retirement 20 (Should use an even number)

years in retirement 55

inflation assumption 0.03

return during savings 0.11

return during retirement 0.0

8 current income35000

current retirement savings 5000

annual contribution to retirement : first half of years to retirement 500 second half of years to retirement 20000

A. How much will your client have on day he/she retires? $398,492.15

D. How much will client be able to withdraw each year of retirement, if client wants to leave an amount equal to 20% of starting amount on day retires (so 20% of part a), to hires upon his death which he assumes will be the last day of his projected retirement? $32,254.90

E. Now create a worst case scenario for your client. You are now half way to saving for retirement: Assume the returns for the first half of the savings period are 2% less than assumed above, and the client only put away half of what was assumed.