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Hello, my question is how much do the Reynolds need to save each year to fund retirement? Showing the formulas, calculations, and/or equations used to
Hello, my question is how much do the Reynolds need to save each year to fund retirement?
Showing the formulas, calculations, and/or equations used to solve this would be greatly appreciated
Please use the 4 Step Annuity Method
Attached is the information needed
Thank you
Subject: Retirement Planning
ITEM SET 1: CAPITAL NEEDS ANALYSIS Troy and Kristy Reynolds (both currently age 56) have determined that they will require retirement income equal to $93,000 in today's dollars, based on their current income. They plan to retire in eight years and wish to assume an after-tax return on their investments, prior to retirement, of eight percent. They plan to readjust their assets after retirement and believe that their net return will drop to six percent. Troy's parents are both in their late eighties, and Kristy's parents are in their seventies. Troy and Kristy assume that retirement will last for 30 years, and that inflation will average two percent. For purposes of Social Security retirement benefits, the Reynolds reach full-retirement age at age 67. Their full benefit is expected to be $30,000 in today's dollars. the Reynolds decided to factor in Social Security and begin taking Social Security benefits when they retire at age 64, 6. The Reynolds modified their thinking and would like to know how much they need to save each year to fund retirement including a few changes. For purposes of this calculation, assume they have retirement savings of $900,000 (from the sale of a few assets), they want to retire at age 62, they will live until age 95, and they will plan on not receiving an inheritance. They also believe that they can live off of $86,000 Instead of $3,000, annually in today's dollars. Social Security benefits are the same as described aboveStep by Step Solution
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