Your clients, Jamal and Chyna Gwynn, would like you to determine if they are on track to meet their retirement goal. Use the following assumptions to answer the Gwynns retirement planning questions:

Jamal: Age forty eight

Chyna: Age fifty

Desired Retirement Age: When Jamal turns Age sixty two

Age to Begin Receiving Social Security Benefits: Age sixty two

Full Retirement Age: Age sixty seven

Earned Income: Jamal $145,000

Earned Income: Chyna $210,000

Bonus: Jamal $25,000

Retirement Income Replacement Ratio: 90 Percent

Investment Rate of Return Before Retirement: 7.90 Percent

Investment Rate of Return After Retirement: 5.50 Percent

Inflation Rate Assumption (Presently and Going Forward): 3.00 Percent

Growth Rate of Retirement Savings and Social Security Benefits: 3.00 Percent

Marginal Federal and State Marginal Tax Rate Before Retirement: 29 Percent

Marginal Federal and State Marginal Tax Rate After Retirement: 29 Percent

Annual Social Security Benefit at Full Retirement: Jamal $42,000

Annual Social Security Benefit at Full Retirement: Chyna $39,000

Other Income in Retirement: $80,000

Combined Retirement Assets Held in Tax-Deferred Assets: $1,500,000

Combined Retirement Savings Using Tax-Deferred Accounts: $42,000

Other Retirement Assets: $0

a.What is the retirement asset value needed on the first day of retirement, plus any additional annual savings needed per year, to fully meet a capital depletion retirement goal.

b.What is the value of assets needed to fund the capital preservation model of retirement? Can the Gwynns currently meet this need?

Your clients, Jamal and Chyna Gwynn, would like you to determine if they are on track to meet their retirement goal. Use the following assumptions to answer the Gwynns retirement planning questions:

Jamal: Age forty eight

Chyna: Age fifty

Desired Retirement Age: When Jamal turns Age sixty two

Age to Begin Receiving Social Security Benefits: Age sixty two

Full Retirement Age: Age sixty seven

Earned Income: Jamal $145,000

Earned Income: Chyna $210,000

Bonus: Jamal $25,000

Retirement Income Replacement Ratio: 90 Percent

Investment Rate of Return Before Retirement: 7.90 Percent

Investment Rate of Return After Retirement: 5.50 Percent

Inflation Rate Assumption (Presently and Going Forward): 3.00 Percent

Growth Rate of Retirement Savings and Social Security Benefits: 3.00 Percent

Marginal Federal and State Marginal Tax Rate Before Retirement: 29 Percent

Marginal Federal and State Marginal Tax Rate After Retirement: 29 Percent

Annual Social Security Benefit at Full Retirement: Jamal $42,000

Annual Social Security Benefit at Full Retirement: Chyna $39,000

Other Income in Retirement: $80,000

Combined Retirement Assets Held in Tax-Deferred Assets: $1,500,000

Combined Retirement Savings Using Tax-Deferred Accounts: $42,000

Other Retirement Assets: $0

a.What is the retirement asset value needed on the first day of retirement, plus any additional annual savings needed per year, to fully meet a capital depletion retirement goal.

b.What is the value of assets needed to fund the capital preservation model of retirement? Can the Gwynns currently meet this need?

Your clients, Jamal and Chyna Gwynn, would like you to determine if they are on track to meet their retirement goal. Use the following assumptions to answer the Gwynns retirement planning questions:

Jamal: Age forty eight

Chyna: Age fifty

Desired Retirement Age: When Jamal turns Age sixty two

Age to Begin Receiving Social Security Benefits: Age sixty two

Full Retirement Age: Age sixty seven

Earned Income: Jamal $145,000

Earned Income: Chyna $210,000

Bonus: Jamal $25,000

Retirement Income Replacement Ratio: 90 Percent

Investment Rate of Return Before Retirement: 7.90 Percent

Investment Rate of Return After Retirement: 5.50 Percent

Inflation Rate Assumption (Presently and Going Forward): 3.00 Percent

Growth Rate of Retirement Savings and Social Security Benefits: 3.00 Percent

Marginal Federal and State Marginal Tax Rate Before Retirement: 29 Percent

Marginal Federal and State Marginal Tax Rate After Retirement: 29 Percent

Annual Social Security Benefit at Full Retirement: Jamal $42,000

Annual Social Security Benefit at Full Retirement: Chyna $39,000

Other Income in Retirement: $80,000

Combined Retirement Assets Held in Tax-Deferred Assets: $1,500,000

Combined Retirement Savings Using Tax-Deferred Accounts: $42,000

Other Retirement Assets: $0

a.What is the retirement asset value needed on the first day of retirement, plus any additional annual savings needed per year, to fully meet a capital depletion retirement goal.

b.What is the value of assets needed to fund the capital preservation model of retirement? Can the Gwynns currently meet this need?

Your clients, Jamal and Chyna Gwynn, would like you to determine if they are on track to meet their retirement goal. Use the following assumptions to answer the Gwynns retirement planning questions:

Jamal: Age forty eight

Chyna: Age fifty

Desired Retirement Age: When Jamal turns Age sixty two

Age to Begin Receiving Social Security Benefits: Age sixty two

Full Retirement Age: Age sixty seven

Earned Income: Jamal $145,000

Earned Income: Chyna $210,000

Bonus: Jamal $25,000

Retirement Income Replacement Ratio: 90 Percent

Investment Rate of Return Before Retirement: 7.90 Percent

Investment Rate of Return After Retirement: 5.50 Percent

Inflation Rate Assumption (Presently and Going Forward): 3.00 Percent

Growth Rate of Retirement Savings and Social Security Benefits: 3.00 Percent

Marginal Federal and State Marginal Tax Rate Before Retirement: 29 Percent

Marginal Federal and State Marginal Tax Rate After Retirement: 29 Percent

Annual Social Security Benefit at Full Retirement: Jamal $42,000

Annual Social Security Benefit at Full Retirement: Chyna $39,000

Other Income in Retirement: $80,000

Combined Retirement Assets Held in Tax-Deferred Assets: $1,500,000

Combined Retirement Savings Using Tax-Deferred Accounts: $42,000

Other Retirement Assets: $0

a.What is the retirement asset value needed on the first day of retirement, plus any additional annual savings needed per year, to fully meet a capital depletion retirement goal.

b.What is the value of assets needed to fund the capital preservation model of retirement? Can the Gwynns currently meet this need?

Your clients, Jamal and Chyna Gwynn, would like you to determine if they are on track to meet their retirement goal. Use the following assumptions to answer the Gwynns retirement planning questions:

Jamal: Age forty eight

Chyna: Age fifty

Desired Retirement Age: When Jamal turns Age sixty two

Age to Begin Receiving Social Security Benefits: Age sixty two

Full Retirement Age: Age sixty seven

Earned Income: Jamal $145,000

Earned Income: Chyna $210,000

Bonus: Jamal $25,000

Retirement Income Replacement Ratio: 90 Percent

Investment Rate of Return Before Retirement: 7.90 Percent

Investment Rate of Return After Retirement: 5.50 Percent

Inflation Rate Assumption (Presently and Going Forward): 3.00 Percent

Growth Rate of Retirement Savings and Social Security Benefits: 3.00 Percent

Marginal Federal and State Marginal Tax Rate Before Retirement: 29 Percent

Marginal Federal and State Marginal Tax Rate After Retirement: 29 Percent

Annual Social Security Benefit at Full Retirement: Jamal $42,000

Annual Social Security Benefit at Full Retirement: Chyna $39,000

Other Income in Retirement: $80,000

Combined Retirement Assets Held in Tax-Deferred Assets: $1,500,000

Combined Retirement Savings Using Tax-Deferred Accounts: $42,000

Other Retirement Assets: $0

a.What is the retirement asset value needed on the first day of retirement, plus any additional annual savings needed per year, to fully meet a capital depletion retirement goal.

b.What is the value of assets needed to fund the capital preservation model of retirement? Can the Gwynns currently meet this need?