Consider that you have decided to quantify many of the aspects required for financial planning on a personal basis. Accordingly, using your age as of the first day of next month, make all the appropriate assumptions as to discount rates to use, inflation rates and any other variables you may need and explain your rationale. Use the methodology described in the course and the videos. It is important that you lead the discussion and explanation of the plan so it would be understood by a reader of the document. Required: 1. You have decided to take control of your financial situation and do some long term planning. Using your age as of the first day of next month, calculate how much you will have to save monthly to achieve your goal of a comfortable retirement. Include all sources of possible income including Government Social Security income etc. 2. What difference will starting 5 years from now make? 3. What difference would earning 200 basis points (2%) more on your investments in Question 1 make? 4. What difference would an increase in inflation of 75 basis points (0.75%)in Question 1 make? 5. A generous benefactor invested $5,000 the day you were born and invested it in TD Bank Common Shares. Using the Investor Relations Investment Calculator in the TD Bank Web site, complete the following table to find how much you would have today without dividends, how much you would have taking cash payment of dividends and with dividends reinvested (DRIP). Calculate the compounded annual rate of return for each of those choices to one decimal place. See hyperlink below. Please note, if you were born before 1975, use 1975 as your start point. If link does not work, calculator can be found in the TD Bank Web site. Note, you will have to calculate the annual compounded rate of return with your financial calculator. Use the number of years invested to one decimal place to get an exact compounded rate of return. 6. What insights have you derived from calculating the results of TD Shares?

http://www.td.com/investor-relations/ir-homepage/share-information/share-pricetools/ investment-calculator.jsp - TD Bank Investor Relations

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Date Invested (Your Birthday) Amount Invested Number of Years Invested $ End Amount No Dividends (a) $ Cash Dividends In Period (b) $ Total End Amount w Cash (a)+(b) $ End Amount W DRIP Compounded Annual Return % No Dividends Compounded Annual Return % w Cash Compounded Annual Return % W DRIP $5,000 Date Invested (Your Birthday) Amount Invested Number of Years Invested $ End Amount No Dividends (a) $ Cash Dividends In Period (b) $ Total End Amount w Cash (a)+(b) $ End Amount W DRIP Compounded Annual Return % No Dividends Compounded Annual Return % w Cash Compounded Annual Return % W DRIP $5,000

Answer rating: 100% (QA)

To begin the financial planning process we need to establish several key assumptions and variables Lets outline the methodology and rationale for each aspect 1 Discount Rate The discount rate represen... View the full answer