Funding the Nest Egg Shortfall
5. Funding the nest egg shortfall Determining Retirement Shortfall Ryan and Rebecca have 25 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and investment needs. Based on their caiculations and taking into account their Social security and pension incomes, they have a projected shortfall of $6,750,00 per year. Use the following tables to answer the questions about fiture vavue interest factors: Use the following tables to answer the questions about future value interest factors. Continuing their worksheet, they consult a friend, economics professor Dr. Garcia, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops: Complete the following table by calculating inflation-adjusted annual shortfaul for Ryan and Rebecea at 5%. Then recalculate the shortfall based an the top rate provided by Dr. Garcia. Funding the shortfall In addition to determining a realistic infiation rate, Ryan and Rebecca talked to their financial advisor to understand rates of return now andiafter they reach retirement, First, their advisor projects that in-25 years, they can realistically earn 5% on their nest egg. Second, he recornmends an investment vehicle that is earning 6% annually: Complete the following table using the inflation-adjusted annual shortfall at 5% as previousiy calculated. Funding the shortfall In addition to determining a realistic inflation rate, Ryan and Rebecca taiked to their financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 25 years, they can realistically earn 5% on their nest egg. Second, he recommends an investment vehicle that is earning 6% annually. Complete the following table using the inflation-adjusted annual shortfall at 5% as previousiy caiculated. Determining Retirement Shortfall Ryan and Rebecca have 25 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and investment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of $6,750,00 per year. Use the foliowing tables to answer the questions about future value interest factors. interest Factors - Future Value The impact of the inflation factor Interest Factors-Future Value Interest Factors-Future Value of acminnulty \begin{tabular}{|llllll} \hline Periods & 3.00% & 5.00% & 6.00% & 8.00% & 9.00% \\ \hline 20 & 26.870 & 33.066 & 36.780 & 45.762 & 51.160 \\ 25 & 36.460 & 47.726 & 54.860 & 73.105 & 84.700 \\ 30 & 47.570 & 66.438 & 79.060 & 113.282 & 136.300 \\ 35 & 60.460 & 90.318 & 111.430 & 172.314 & 215.700 \\ 40 & 75.400 & 120.797 & 154.760 & 259.052 & 337.870 \end{tabular} The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Garcia, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Complete the following table by cakculating inflation-adfusted annual shortfall for Ryan and Rebecca at 5%. Then recalculate the shortfall based on the top rate provided by Dr. Garcia. Funding the shortfall In addition to determining a realistic inflation rate, Ryan and Rebecca talked to their financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 25 years, they can realistically earn 5% on their nest egg. Second, he recommends an investment vehicle that is earning 6% annually. Funding the shortfall In addition to determining a realistic inflation rate, Ryan and Rebecca talked to their financial advisor to understand rates of retum now and after they reach retirement. First, their advisor projects that in 25 years, they can realistically earn 5% on their nest egg. Second, he recommends an investment vehicle that is earning 6% annually. Complete the following table using the inflation-adjusted annual shortfall at 5% as previously calculated. 5. Funding the nest egg shortfall Determining Retirement Shortfall Ryan and Rebecca have 25 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and investment needs. Based on their caiculations and taking into account their Social security and pension incomes, they have a projected shortfall of $6,750,00 per year. Use the following tables to answer the questions about fiture vavue interest factors: Use the following tables to answer the questions about future value interest factors. Continuing their worksheet, they consult a friend, economics professor Dr. Garcia, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops: Complete the following table by calculating inflation-adjusted annual shortfaul for Ryan and Rebecea at 5%. Then recalculate the shortfall based an the top rate provided by Dr. Garcia. Funding the shortfall In addition to determining a realistic infiation rate, Ryan and Rebecca talked to their financial advisor to understand rates of return now andiafter they reach retirement, First, their advisor projects that in-25 years, they can realistically earn 5% on their nest egg. Second, he recornmends an investment vehicle that is earning 6% annually: Complete the following table using the inflation-adjusted annual shortfall at 5% as previousiy calculated. Funding the shortfall In addition to determining a realistic inflation rate, Ryan and Rebecca taiked to their financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 25 years, they can realistically earn 5% on their nest egg. Second, he recommends an investment vehicle that is earning 6% annually. Complete the following table using the inflation-adjusted annual shortfall at 5% as previousiy caiculated. Determining Retirement Shortfall Ryan and Rebecca have 25 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and investment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of $6,750,00 per year. Use the foliowing tables to answer the questions about future value interest factors. interest Factors - Future Value The impact of the inflation factor Interest Factors-Future Value Interest Factors-Future Value of acminnulty \begin{tabular}{|llllll} \hline Periods & 3.00% & 5.00% & 6.00% & 8.00% & 9.00% \\ \hline 20 & 26.870 & 33.066 & 36.780 & 45.762 & 51.160 \\ 25 & 36.460 & 47.726 & 54.860 & 73.105 & 84.700 \\ 30 & 47.570 & 66.438 & 79.060 & 113.282 & 136.300 \\ 35 & 60.460 & 90.318 & 111.430 & 172.314 & 215.700 \\ 40 & 75.400 & 120.797 & 154.760 & 259.052 & 337.870 \end{tabular} The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Garcia, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Complete the following table by cakculating inflation-adfusted annual shortfall for Ryan and Rebecca at 5%. Then recalculate the shortfall based on the top rate provided by Dr. Garcia. Funding the shortfall In addition to determining a realistic inflation rate, Ryan and Rebecca talked to their financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 25 years, they can realistically earn 5% on their nest egg. Second, he recommends an investment vehicle that is earning 6% annually. Funding the shortfall In addition to determining a realistic inflation rate, Ryan and Rebecca talked to their financial advisor to understand rates of retum now and after they reach retirement. First, their advisor projects that in 25 years, they can realistically earn 5% on their nest egg. Second, he recommends an investment vehicle that is earning 6% annually. Complete the following table using the inflation-adjusted annual shortfall at 5% as previously calculated
