1) There are a number of groups which are interested in retirement planning. Give three examples...

 

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1) There are a number of groups which are "interested" in retirement planning. Give three examples of parties who are interested in retirement planning, and explain how and why they have an interest. (15 points) 2) List 3 types of expenses that may adjust in retirement for a retiree. Of these, include one that will always (or almost always) increase; one that will always (or almost always) decrease, and; one that could go either way depending on the lifestyle of the retiree. Include a brief explanation of each (why is your example an expense that will increase, decrease, or could go either way). (15 points) A) Increase: B) Decrease: C) Lifestyle dependent 3) There are many potential risks and pitfalls as people plan for retirement. In the broadest sense, Retirement Risk is the potential that retirees will not have sufficient assets or income to last their entire retirement. List and briefly explain three risks or variables that could contribute to Retirement Risk, and how they could result in a retiree exhausting their assets. For each of the risks or variables, give one example for how that risk could be mitigated. (25 points) 4) We have the following information and assumptions about Ted's retirement planning process. Based on the information and assumptions, perform a 4 step approach analysis. Show your numbers/calculations for each of the steps. For steps completed in Excel, indicate the input numbers for each of the variables (PV, FV, Rate, NPER, PMT, Type) (20 Points total; 5 Points per Step) Current Salary: $72000 Current Age: 26 Wage replacement ratio at retirement: 85% Expected Retirement Age: 63 Inflation (both pre- and post-retirement: 3.5% Life Expoctancy: 91 Pre-retirement Nominal Return: 8.25% Expected Social Security: 22,000 Step 1: Step 2: Step 3: Step 4: Post-retirement Nominal Return: 6.5% 1) There are a number of groups which are "interested" in retirement planning. Give three examples of parties who are interested in retirement planning, and explain how and why they have an interest. (15 points) 2) List 3 types of expenses that may adjust in retirement for a retiree. Of these, include one that will always (or almost always) increase; one that will always (or almost always) decrease, and; one that could go either way depending on the lifestyle of the retiree. Include a brief explanation of each (why is your example an expense that will increase, decrease, or could go either way). (15 points) A) Increase: B) Decrease: C) Lifestyle dependent 3) There are many potential risks and pitfalls as people plan for retirement. In the broadest sense, Retirement Risk is the potential that retirees will not have sufficient assets or income to last their entire retirement. List and briefly explain three risks or variables that could contribute to Retirement Risk, and how they could result in a retiree exhausting their assets. For each of the risks or variables, give one example for how that risk could be mitigated. (25 points) 4) We have the following information and assumptions about Ted's retirement planning process. Based on the information and assumptions, perform a 4 step approach analysis. Show your numbers/calculations for each of the steps. For steps completed in Excel, indicate the input numbers for each of the variables (PV, FV, Rate, NPER, PMT, Type) (20 Points total; 5 Points per Step) Current Salary: $72000 Current Age: 26 Wage replacement ratio at retirement: 85% Expected Retirement Age: 63 Inflation (both pre- and post-retirement: 3.5% Life Expoctancy: 91 Pre-retirement Nominal Return: 8.25% Expected Social Security: 22,000 Step 1: Step 2: Step 3: Step 4: Post-retirement Nominal Return: 6.5%

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Lets break down your questions and address them step by step Parties interested in retirement planning a Individuals Individuals are the primary stakeholders interested in retirement planning because ... View the full answer