Question #17 Frank has a current income of $60,000 per year. He has completed a Retirement...
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Question #17 Frank has a current income of $60,000 per year. He has completed a Retirement Needs Analysis and estimates he will need 80% of his current income in retirement to maintain his current standard of living. He plans to retire in 25 years and estimates he will receive retirement income from the following sources: CPP $10,000 per year, company pension $24,000 per year, personal investments $6,000. His life expectancy after retirement is 30 years. M beda He estimates inflation will be 3.9% annually and expects a 6.5% annual rate of return on investments post retirement and 8% annual rate of return pre-retirement. Use the Capitalizing the Shortfall method to calculate how much Frank should save at the beginning of every year to maintain his standard of living in retirement. Frank wants to leave $100,000 to his estate. Question #17 Frank has a current income of $60,000 per year. He has completed a Retirement Needs Analysis and estimates he will need 80% of his current income in retirement to maintain his current standard of living. He plans to retire in 25 years and estimates he will receive retirement income from the following sources: CPP $10,000 per year, company pension $24,000 per year, personal investments $6,000. His life expectancy after retirement is 30 years. M beda He estimates inflation will be 3.9% annually and expects a 6.5% annual rate of return on investments post retirement and 8% annual rate of return pre-retirement. Use the Capitalizing the Shortfall method to calculate how much Frank should save at the beginning of every year to maintain his standard of living in retirement. Frank wants to leave $100,000 to his estate.
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Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0134730363
8th edition
Authors: Arthur J. Keown
Posted Date:
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