need in excel
What to Do: Create a dynamic model that could easily be used by an average investor. The model should provide the user with their optimal retirement plan and their annual retirement income, upon retirement. The optimal plan and associated retirement income will depend on the user's inputs. Create a model where the user can easily input data related to their retirement. Specifically, the user should be clearly show where to input values for their: Annual Income(pretax) Annual Savings rate(% of income put towards retirement) Current Tax Rate Retirement Tax Rate Current Age Retirement Age Expected Age of Death These inputs should be displayed clearly on the spreadsheet for the user to reference and these inputted values will be used throughout the model. For the low return option, assume the investor will earn an APR of 3%, for average(medium) return assume an APR of 7% and for high return assume a return of 11%. (Assume annual compounding, year-end contributions, and no contribution/deduction limits) The investor has 3 options when planning for retirement. They may choose to put their savings in a taxable investment account, a traditional IRA or 401k, or a Roth IRA. A taxable investment account is such that contributions are made post-tax, gains are immediately taxable and annual retirement payments are not taxed. A traditional IRA or 401k has contributions made pre-tax, gains are not taxed, but annual retirement payments are taxed. A Roth IRA has contributions made post-tax, gains are not taxed and retirement payments are not taxed. (Note: for all three models, we are not limiting the amount of savings that can be contributed to the account each year therefore do not impose any contribution limits.) What to Do: Create a dynamic model that could easily be used by an average investor. The model should provide the user with their optimal retirement plan and their annual retirement income, upon retirement. The optimal plan and associated retirement income will depend on the user's inputs. Create a model where the user can easily input data related to their retirement. Specifically, the user should be clearly show where to input values for their: Annual Income(pretax) Annual Savings rate(% of income put towards retirement) Current Tax Rate Retirement Tax Rate Current Age Retirement Age Expected Age of Death These inputs should be displayed clearly on the spreadsheet for the user to reference and these inputted values will be used throughout the model. For the low return option, assume the investor will earn an APR of 3%, for average(medium) return assume an APR of 7% and for high return assume a return of 11%. (Assume annual compounding, year-end contributions, and no contribution/deduction limits) The investor has 3 options when planning for retirement. They may choose to put their savings in a taxable investment account, a traditional IRA or 401k, or a Roth IRA. A taxable investment account is such that contributions are made post-tax, gains are immediately taxable and annual retirement payments are not taxed. A traditional IRA or 401k has contributions made pre-tax, gains are not taxed, but annual retirement payments are taxed. A Roth IRA has contributions made post-tax, gains are not taxed and retirement payments are not taxed. (Note: for all three models, we are not limiting the amount of savings that can be contributed to the account each year therefore do not impose any contribution limits.)
