Dr. Williams, age 64, wants to retire in three years. He has engaged you for an analysis
Question:
Dr. Williams, age 64, wants to retire in three years. He has engaged you for an analysis of his retirement plan.
Based on reasonable assumptions, his goals for retirement income cannot be met. In order to meet Dr. Williams’s retirement income goals, an unreasonably high return assumption must be utilized. What should you do?
A. Mutually agree to cancel the PFP engagement.
B. Model the plan using only your return assumptions.
C. Model the plan using both your return assumptions and the necessary assumptions to meet his required retirement income goal.
D. Acknowledge the limitation on the scope of engagement and use the necessary assumption to achieve Dr. Williams’ income goal.
Step by Step Answer:
Essentials Of Personal Financial Planning
ISBN: 9781945498237
1st Edition
Authors: Susan M. Tillery, Thomas N. Tillery