PART B: Assume it is now five years later. Don and Kerry (both aged 35) have managed to purchase a house and their business is doing well, they have paid off their credit card debt in full. After covering living expenses, Don and Kerry have $850 left over as savings at the end of each month. They have decided that they now need to make plans for their financial security in retirement. They both know that they need to do something to start planning for retirement, they just never seem to get around to putting their plan into action. They have decided to meet with a financial adviser, Jill Becker, CFPCM, to help them get started with their planning. They tell Jill that they do not plan to have children and therefore do not need to make any plans for leaving money for their dependents. They only want to ensure that they have sufficient funds to live off during retirement. Questions for Part B: Answer the following questions: For the purposes of calculations, you must ignore the impact of taxes, transactions costs, and fees. Assume that inflation is 0% over all the time periods. Assume all cash flows happen at the end of the time period. 8. They anticipate that their expenses in retirement will be $85,000 per year (assume that they will not receive any additional funds from any other source to fund their expenses). They plan to retire at age 65 and anticipate that they will live to the age of 85. How much do they need to have saved by retirement if the return they will earn on their funds during retirement will be 5% per annum (compounded annually), and they do not need to have any money left at the age of 85? (1 mark) 9. Assume they have no other savings today and they have both just turned 35 years old. If they are able to save $850 at the end of each month, and earn a return of 7% per annum (compounded monthly). How much will they have saved by the time they turn 65? (1 mark) 10. Assume that what they aim to have saved by retirement from Question 9 is sufficient to cover the requirements worked out in Question 8. Discuss whether there are any other risks or factors that the couple need to take into account in terms of their retirement planning. [Maximum word count: 250 words]