Question
In an Excel spreadsheet, detail the returns on five selected stocks (Walmart, Amazon, Microsoft, Johnson & Johnson, and Target) that you will use as the
In an Excel spreadsheet, detail the returns on five selected stocks (Walmart, Amazon, Microsoft, Johnson & Johnson, and Target) that you will use as the basis for creating wealth required to support your personal financial initiatives. Select five key stocks and determine their expected return from finance.yahoo.com. Presume you would invest 20% equally in these stocks and average the return. Calculate how much you would have to deposit each year until retirement to fund all of your initiatives assuming the rate of return on these equities is constant.
Describe your rationale for selecting the stocks in your portfolio, including your own risk tolerance and any considerations for diversification. Complete a calculation of the annual amount required to support any gap between your present wealth and your future need, using the return derived from your portfolio as the realized return. This amount will be represented by an annual annuity funded by your savings drawn from your present income; assume that salary increases will be exactly offset by inflation and thus, your present salary (Assume income of $64,800) will be static. (Recall that if you currently have automatic deposits to a 401(k), these will be redirected to the portfolio you have developed.) Determine whether you are able to deposit enough to fund all of your financial goals according to your calculations. Document this amount in a composition describing your findings. If there are any gaps in the total amount you are able to realize based on your current income, develop and document a plan to support the difference. Various alternatives may include finding another career position and increasing income, or purchasing a smaller home, curtailing retirement funds, or deriving savings elsewhere.
Addtional information that I have: After calculating my retirement needs, the funds needed at retirement to finace my shortfall ar $280,000 and according to the spreadsheet, I will need to save $3000 per month to cover the shortfall.
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