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PLEASEEEE!!!!! The difference between a Roth IRA and a traditional IRA is that in a Roth IRA taxes are paid on the Income that is
PLEASEEEE!!!!!
The difference between a Roth IRA and a traditional IRA is that in a Roth IRA taxes are paid on the Income that is contributed, but the withdrawals at retirement are tax-free. In a traditional IRA, however, the contributions reduce your taxable income, but the withdrawals at retirement are taxable. Assume you plan to devote $5,000 to retirement savings in each year. You will retire in 30 years and expect to live for an additional 20 years after retirement a. Assume the before-tax Interest rate is 5%. What will be your after-tax 20-year retirement consumption stream If you choose to save In a traditional IRA? Assume your tax rate is fixed at 30%. (Round your answers to 2 decimal place.) 20-year consumption stream (assuming monthly payouts) b. What will be your 20-year retirement consumption stream If you choose to save in a Roth IRA? (Round your answers to 2 decimal place.) 20-year consumption stream (assuming monthly payouts) c. Which provides better expected results if you expect your tax rate to decrease from 30% today to 25% at retirement? Traditional IRA O Roth IRA Consider the following Information regarding the performance of money manager in a recent month. The table represents the actual retum of each sector of the manger's portfolio in column 1, the fraction of the portfolio sllocated to each sector in column 2. the benchmark or neutral sector allocations in column 3, and the returns of sector Indices in column 4 Actual Return Actualment Benchmark Weight Equity Bonds Index Return 2.9% (S&P 500) 1.6 (Barclay's Agrote) 2.5 2.1 --1. What was the manager's return in the month? Do not round Intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.) The manager's return in the months 6-2 What was her overperformance or underperformance? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.) b. What was the contribution of security selection to relative performance? Do not round Intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign) Contribution of security selection c. What was the contribution of sszet allocation to relative performance (Do not round Intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign) Contribution of assot allocationStep by Step Solution
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