Retirement needs assessment. A little bit of calculations. 1 page assignment

Julie age 42, plans to retire at age 62, and estimates to live until age 90. Her current income is $70,000 and she has determined her wage replacement ratio will be 80%. Her Social Security benefit in today's dollars adjusted for early retirement is $15,000 per year. She expects to earn 9.5% on her investments both before and during retirement. Inflation is expected to average 3%. (6 points) What is the capital necessary at the beginning of retirement, in current dollars given inflation adjusted return, to fund the retirement period? How much must she save at the end of each year to reach this goal, if she has already saved $60,000? What is the capital necessary at the beginning of retirement, in current dollars given inflation adjusted return, if using the capital preservation model? How much must she save at the end of each year using capital preservation if she has already saved $60,000? What is the capital necessary at the beginning of retirement, in current dollars given inflation adjusted return if using the purchasing power preservation model? How much must she save at the end of each year using purchasing power preservation if she has already saved $60,000? For the second problem, you will need to provide your own objective, using the current inflation rate and current reasonable return given the account being used (please provide documentation for these numbers). You should be able to pull most of this information from the needs analysis worksheet, which is also part of this assignment. Please refer to your Social Security Benefits Statement for your expected benefit in today's dollars. Though, ideally, I would like each of you to complete a retirement needs analysis based on your personal financial goals, this isn't always practical. If it isn't, please do use a fictitious objective. (4 points) ____________________ age ____, plans to retire at age ____, and estimates to live until age ____. Current income is ____________ and the wage replacement ratio will be ____%. The Social Security benefit in today's dollars adjusted for retirement is $__________ per year. The average expected return on investments is ____% both before and during retirement. Inflation is expected to average ___%. What is the capital necessary at the beginning of retirement to fund the retirement period? How much must you save at the end of each year to reach this goal, if you have already saved $__________