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Hello I got some questions with the process of the TVM in this questions can someone explain this to me in a step by step
Hello I got some questions with the process of the TVM in this questions can someone explain this to me in a step by step so that I can see if I got it right or did the wrong step. Please. Here is some information: Harry and Hazel Jones both aged years old believe they have a solid financial future, but they are concerned about t he actions they need to take to ensure their retirement goals. They have come to you for assistance in determining how they can achieve these goals. Here are some details about the Joneses: Hazel Jones Age Hazel is a selfemployed business owner in the technology field. She sees a bright future in her work and expects to grow her business over time. This year, she anticipates a net income of $ Harry Jones Age Harry is an attorney specializing in criminal defense law. He is an employee of Catania & Catania Law Associates. Harry is starting his sixth year of practice. He has been discouraged lately with his growth prospectsat work. He sees only a limited ability to increase his salary in the future and is concerned that his salary increases are not likely to exceed inflation. Personal and Financial Objectives They want to assist Harry's parents in their retirement years, as needed. They want to be free of mortgage indebtedness by the time Harry is years old. They want to design a retirement plan that will provide an income to replace of Harry's preretirement income. Economic Information They expect inflation to average They expect an educational consumer price index CPI of They expect Harry's salary to increase by annually. They are in a federal income tax bracket and a state income tax bracket. Investment Information Assumptions The Joneses consider themselves to be moderate risktaking investors. Expected Return Beta Aggressive stocks Growth stocks S&P Index Value stocks Bonds corporate Money market bank Retirement Information Harry and Hazel would like to retire at or before age They both expect to live to age They would like tohave a standard of living equal to of Harry's preretirement income. They do not want to rely on Social Security benefits to plan their retirement. During the past year, Harry began participating in a Section k plan available through his job. Under the plan, his employer matches $ for every dollar contributed, up to of his salary. The maximum contribution by his employer is a total of Harry is saving of his salary. Using the capital utilization approach, calculate the capital needed at retirement age for the Joneses. Assume a aftertax rate of return. Base the calculation on Harry's salary only, using a wage replacement ratio. Use Time Value Money Using the capital preservation approach, calculate the capital needed at retirement for the Joneses to replace of Harry's salary. Using the wealth preservation approach, calculate the capital needed at retirement for the Joneses to replace of Harry's salary. Using Time Value Money
Hello I got some questions with the process of the TVM in this questions can someone explain this to me in a step by step so that I can see if I got it right or did the wrong step. Please.
Here is some information:
Harry and Hazel Jones both aged years old believe they have a solid financial future, but they are concerned about t he actions they need to take to ensure their retirement goals. They have come to you for assistance in determining how they can achieve these goals.
Here are some details about the Joneses:
Hazel Jones Age
Hazel is a selfemployed business owner in the technology field. She sees a bright future in her work and expects to grow her business over time. This year, she anticipates a net income of $
Harry Jones Age
Harry is an attorney specializing in criminal defense law. He is an employee of Catania & Catania Law Associates. Harry is starting his sixth year of practice. He has been discouraged lately with his growth prospectsat work. He sees only a limited ability to increase his salary in the future and is concerned that his salary
increases are not likely to exceed inflation.
Personal and Financial Objectives
They want to assist Harry's parents in their retirement years, as needed.
They want to be free of mortgage indebtedness by the time Harry is years old.
They want to design a retirement plan that will provide an income to replace of Harry's preretirement income.
Economic Information
They expect inflation to average
They expect an educational consumer price index CPI of
They expect Harry's salary to increase by annually.
They are in a federal income tax bracket and a state income tax bracket.
Investment Information Assumptions
The Joneses consider themselves to be moderate risktaking investors.
Expected Return Beta
Aggressive stocks
Growth stocks
S&P Index
Value stocks
Bonds corporate
Money market bank
Retirement Information
Harry and Hazel would like to retire at or before age They both expect to live to age They would like tohave a standard of living equal to of Harry's preretirement income. They do not want to rely on Social Security benefits to plan their retirement. During the past year, Harry began participating in a Section k plan available through his job. Under the plan, his employer matches $ for every dollar contributed, up to of his salary. The maximum contribution by his employer is a total of Harry is saving of his salary.
Using the capital utilization approach, calculate the capital needed at retirement age for the Joneses. Assume a aftertax rate of return. Base the calculation on Harry's salary only, using a wage replacement ratio. Use Time Value Money
Using the capital preservation approach, calculate the capital needed at retirement for the Joneses to replace of Harry's salary.
Using the wealth preservation approach, calculate the capital needed at retirement for the Joneses to replace of Harry's salary. Using Time Value Money
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