Question: As a financial planner, based on the following information given by your client. Annual Savings to IRA - $5,000 Investment Balance (beginning of the year)

As a financial planner, based on the following information given by your client.

  • Annual Savings to IRA - $5,000
  • Investment Balance (beginning of the year) - $90,000
  • Net Worth (beginning of the year) - $800,000
  • IRA Balance (beginning of the year) - $50,000
  • Investment Balance (end of the year) - $135,000
  • Net Worth (end of the year) - $1,070,000
  • IRA Balance (end of the year) - $92,000

Calculate the following ratios, and comment on if they are within the normal range.

a. The return on investments ratio =

b. The return on the IRA ratio =

c. The return on net worth ratio =

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