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university. Jamie Lee and Ross are just a few short years from realizing their goals of retiring at 6 5 and purchasing a home at
university.
Jamie Lee and Ross are just a few short years from realizing their goals of retiring at and purchasing a home at the beach!
They are reviewing their financial situation to ensure they will be ready for retirement. They anticipate being able to live comfortably with of their current expenses. The rate of return on their investments until they retire is They expect this percentage to drop to after retirement. Use this information, along with Exhibit A Exhibit B and the information provided below to determine the annual deposit amount Jamie Lee and Ross will need to make until they retire in order to make up the shortfall between their estimated expenses and income needed during retirement Each answer must have a value for the assignment to be complete. Enter for any unused categories.
Current Expense Amounts Jamie Lee and Ross Combined
Fixed expenses: $ per month
Variable expenses $ per month
Estimated Income Amounts Jamie Lee and Ross Combined
Social Security: $ per month
Current IRA balance: $
Estimated IRA withdrawal: $ per month
Other investments: $ per year
Estimated Annual Retirement Living Expenses
Estimated annual living expenses if retiring today
Number of years until retirement
Expected annual rate of return before retirement
Future value use Exhibit A
Projected annual retirement living expenses, adjusted for inflation
Estimated Annual Income at Retirement
Social Security income
Company pension, personal retirement account income
Investment and other income
Total retirement income
table
Annual shortfall of income after retirement
C
Expected years in retirement
Expected annual rate of return before retirement
Expected annual rate of return on invested funds after retirement
table$$$$$
Future value factor for a series of deposits use Exhibit B
table$$
Annual deposit required to accumulate the amount needed
D
Prey
of
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