You are a financial planning Larry's retirement. Here is what you know:

Larry would like to retire at age 65 and is currently age 55. He has $500,000 saved in his 401k and contributes $12,000 per year. His employer also matches 5% of his salary. Larry makes $85,000 and is expected to get annual raises equal to inflation leading up to retirement. He's worked 15 years for his employer and plans to stay until retirement. He also has a pension that will pay an annual benefit equal to 1.5% multiplied by the average of his final five years salary and his years of service at the time of retirement; this benefit will remain static throughout retirement. Larry has a estimated Social Security benefit of $1800 per month in today's dollars but will grow annually with inflation before and after retirement. His income objective at the time of retirement is $60,000 in today's dollars. This income need will grow by inflation before and after retirement.

1) Please build a spreadsheet to determine what resources Larry will have at the time of his retirement at age 65, how these resources will be used from the time of his retirement until his life expectancy of age 85, and what will be left when he passes. 2) Explain what lead you to following assumptions that will be used in your analysis: a. Annual investment rate of return on the 401k assets. Assume Larry maintains a balanced portfolio before and after retirement, equally weighted between stocks and bonds.

b. Annual rate of inflation.