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h 14: Assignment - Planning for Retirement. 5. Funding the nest egg shortfall Determining Retirement Shortfall Yuan and Alex have 30 years to retiremeat. They

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h 14: Assignment - Planning for Retirement. 5. Funding the nest egg shortfall Determining Retirement Shortfall Yuan and Alex have 30 years to retiremeat. They are taking o personal finance course and have calculated their projected retirement incorne and investment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of $6,000.00 per year. Use the following tables to answer the questions about future value interest factors. The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Wu, who believes that they can expect the average annual infation rate to be 5%, possibly 6% tops. The impact of the inflation factor Continuing their worksheet, they consult a frlend, economics professor Dr. Wu, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Complefe the following tabie by calculating inflation-adjusted annual shortfall for Yuan and Alex at 5%. Then recaiculate the shortfall based on the top rate provided oy or. Wu. Funding the shortfall In addition to determining a realistic inflation rate, Yuan and Alex talked to their financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 30 years, they can realistically earn 5% on their nest egg. Second, he recommends an investment vehicle that is eaming 6% annually. Complete the following tabie using the inhlotion-adjusted annual shortfall at 5% as previously calculated. Complete the following table by calculating inflation-adjusted annual shortfall for Yuan and Alex at 5%. Then recalculate the shortfall based on the top rate provided by Dr. Wo. Funding the shortfall In addition to determining a realistic infiation rate. Yuan and Alex talked to their financial advisor to understand rates of return now and after they reach retirement. First, their advisor projects that in 30 years, they can realistically earn 5% on their nest egg. Second, he recommends an investment vehicle that is eaming 6% annually. Complete the following table using the inflation-adjusted annual shortfall at 5% as previously calculated

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