Retirement Problem (20 points):. Assume that you start investing today on your 25th birthday in a Roth IRA by making a lumpsum deposit of $6,500. Every year thereafter on your birthday, you plan on making a contribution to your Roth IRA based upon a percentage of your income. Your starting salary is $50,000 per year and grows by 2.0% per year. (Therefore, your salary at age 26 will be 2.0% larger than your salary at 25, and so on.) As such, you plan on contributing 8.0% of your Income every year on your birthday. However, because of IRS rules, the maximum contribution amount to an IRA that you can make is $6,500 per year with that amount jumping to $7,500 if you are age 50 or older, which you plan on utilizing on the day you turn 50. You expect to receive salary increases of $5,000 every 10 years (you expect your salary to jump during the year after your 35th birthday, 45th birthday, and 55th birthday). At age 65, you stop earning a salary and plan on retiring and will begin to withdraw money every year on your birthday after you turn 65. You hope to live for 25 years in retirement so your plan assumes that you will die on your 90th birthday. You do not want to die poor, but you hope to leave a legacy for your family. Therefore, you decide to leave $100,000 behind for your family to argue over. However, you are worried about inflation so you decide that you want the $100,000 to be worth the same as it is today so you plan on adjusting the total amount left by a yearly inflation rate of 2.0%. To invest your money, you decide to do a simple combination of stocks and bonds which have the following expected returns. From age 25 until you turn 40, you Invest in a portfolio of 70% stocks and 30% bonds which returns 9.1% annually. From age 40 until you turn 50, you invest in a portfolio of 60% stocks and 40% bonds which returns 8.0% annually. - From age 50 until you turn 60, you invest in a portfolio of 50% stocks and 50% bonds which returns 6.5% annually. From age 60 until you turn 65, you invest in a portfolio of 40% stocks and 60% bonds which returns 5.0% annually. - From age 65 onward, you Invest in a guaranteed product paying 3.5% annually. Obviously, nothing is guaranteed. Therefore, you expect to return -10.00 % during every 8th year after 25 until 65 (t-8, 16, 24, etc.). Complete the Table below with proper cell references.

\begin{tabular}{|c|c|c|c|c|c|c|} \hline Period & Aes: & soler & Mete of Retura & Eevianing Balans: & Contribution/Wathdrawal & Endins Eolenes. \\ \hline 0 & 75 & & & & & \\ \hline 1 & 25 & & & & & \\ \hline 2 & 27 & & & & & \\ \hline 3 & 2028 & & & & & \\ \hline ; & 30 & & & & & \\ \hline 6 & ni & & & & & \\ \hline ? & 33 & & & & & \\ \hline & 3413 & & & & & \\ \hline io & is & & & & & \\ \hline 11 & 30 & & & & & \\ \hline 13. & 37 & & & & & \\ \hline 13 & n3a & & & & & \\ \hline inis & 40 & & & & & \\ \hline is & 41 & & & & & \\ \hline 1y & a & & & & & \\ \hline II & 4 & & & & & \\ \hline 19 & is & & & & & \\ \hline 23 & 46 & & & & & \\ \hline 22 & i) & & & & & \\ \hline & 44s & & & & & \\ \hline sis & so & & & & & \\ \hline 26 & 51 & & & . & & \\ \hline 22 & 57 & & & & & \\ \hline zin & 33 & & & & & \\ \hline 10 & is & & & & & \\ \hline 31 & 36 & & & & & \\ \hline 33131 & 3947 & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline Period & Aes: & soler & Mete of Retura & Eevianing Balans: & Contribution/Wathdrawal & Endins Eolenes. \\ \hline 0 & 75 & & & & & \\ \hline 1 & 25 & & & & & \\ \hline 2 & 27 & & & & & \\ \hline 3 & 2028 & & & & & \\ \hline ; & 30 & & & & & \\ \hline 6 & ni & & & & & \\ \hline ? & 33 & & & & & \\ \hline & 3413 & & & & & \\ \hline io & is & & & & & \\ \hline 11 & 30 & & & & & \\ \hline 13. & 37 & & & & & \\ \hline 13 & n3a & & & & & \\ \hline inis & 40 & & & & & \\ \hline is & 41 & & & & & \\ \hline 1y & a & & & & & \\ \hline II & 4 & & & & & \\ \hline 19 & is & & & & & \\ \hline 23 & 46 & & & & & \\ \hline 22 & i) & & & & & \\ \hline & 44s & & & & & \\ \hline sis & so & & & & & \\ \hline 26 & 51 & & & . & & \\ \hline 22 & 57 & & & & & \\ \hline zin & 33 & & & & & \\ \hline 10 & is & & & & & \\ \hline 31 & 36 & & & & & \\ \hline 33131 & 3947 & & & & & \\ \hline \end{tabular}