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do 1-2 -3on excel show formula it is the full question John Doe, a 23 years young newly graduated engineer just got a job in

do 1-2 -3on excel show formula

it is the full question image text in transcribed

John Doe, a 23 years young newly graduated engineer just got a job in a major engineering firm. Human resources told him that he could join the company's 401K Plan, and if his maximum contribution is 10 percent of his gross annual salary then company will match another 5% to his contribution. He is paid $35 per hour and he gets a 2.5% raise every other year and after 20 years of work he is laid off. Roth IRA is $6000 per year during this period. (Age23- 42) He finds another job with an annual salary of $120'000 per year and works till his retirement (43-67). The new company doesn't have a retirement plan and he can only save in his Personal IRA $15000 per year on the average. During second half of his career the salary increase is only 3% every five years and there are no medical benefits either. John was assuming that at retirement he has paid off his mortgage, he doesn't have a major consumer debt and based on today's buying power he only needs $5000 to live well. For this project you are required to examine: 1. His NEED during retirement if inflation rate is 4.5%? His life expectancy is 95 years. 2. How much does he need to retire @ ages 55, 62 and 67? 3. If he invests in Roth IRA account at what age he could take early retirement? 4. You may go to Morningstar.com to research and use the funds that their performance is about 10% or more and site the source. 5. Must use Excel to show work. John Doe, a 23 years young newly graduated engineer just got a job in a major engineering firm. Human resources told him that he could join the company's 401K Plan, and if his maximum contribution is 10 percent of his gross annual salary then company will match another 5% to his contribution. He is paid $35 per hour and he gets a 2.5% raise every other year and after 20 years of work he is laid off. Roth IRA is $6000 per year during this period. (Age23- 42) He finds another job with an annual salary of $120'000 per year and works till his retirement (43-67). The new company doesn't have a retirement plan and he can only save in his Personal IRA $15000 per year on the average. During second half of his career the salary increase is only 3% every five years and there are no medical benefits either. John was assuming that at retirement he has paid off his mortgage, he doesn't have a major consumer debt and based on today's buying power he only needs $5000 to live well. For this project you are required to examine: 1. His NEED during retirement if inflation rate is 4.5%? His life expectancy is 95 years. 2. How much does he need to retire @ ages 55, 62 and 67? 3. If he invests in Roth IRA account at what age he could take early retirement? 4. You may go to Morningstar.com to research and use the funds that their performance is about 10% or more and site the source. 5. Must use Excel to show work

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