You recently had a client meeting with Bill & Jane Smith and gathered the attached information from your time together. The big question that your clients had was; Will we have enough to retire and how much is enough?

Your task is to be able to meet with them again and report back.

Note:

You are to assume a 4% portfolio yield during the distribution period, (retirement).

You gathered that during retirement they would prefer never to use capital, such that they can leave an inheritance to their children.

Q.1 How much will they need at retirement in their retirement portfolio?

Q.2 what required investment rate of return will they need to achieve this goal.

Q3 Is this realistic, how could they improve their chances for reaching their goal?

Birthdate Birthdate Name Jane & Bill Smith Current Compensation 7/21/1976 70,000 4/15/1977 55,000 $ $ Desirable Acceptable What age would you like to retire / have options? 67 How much would you like in monthly income? $ 12,000 How much are you currently saving? Annually Profit Sharing Plan 0.00% 6.00% 401(k) 401(k) 6.00% Other Company Match (both spouses have a Co. match) 3.00% What are your current retirement savings balances? Annually 127,000 Profit Sharing Plan 401(k) 401(k) IRA (Bill) Other (Family Inheritance) $ 56,500 $ 25,000 $ 50,000 What other retirement income do you expect? $ 32,000 Estimated Annual Social Security Retirement Income Estimated Annual Social Security Retirement Income -Spouse Other #1 $ 16.000 Other #2 Birthdate Birthdate Name Jane & Bill Smith Current Compensation 7/21/1976 70,000 4/15/1977 55,000 $ $ Desirable Acceptable What age would you like to retire / have options? 67 How much would you like in monthly income? $ 12,000 How much are you currently saving? Annually Profit Sharing Plan 0.00% 6.00% 401(k) 401(k) 6.00% Other Company Match (both spouses have a Co. match) 3.00% What are your current retirement savings balances? Annually 127,000 Profit Sharing Plan 401(k) 401(k) IRA (Bill) Other (Family Inheritance) $ 56,500 $ 25,000 $ 50,000 What other retirement income do you expect? $ 32,000 Estimated Annual Social Security Retirement Income Estimated Annual Social Security Retirement Income -Spouse Other #1 $ 16.000 Other #2