Carlson is currently 35 years old and would like to retire at age 60 (i.e. 25...

 

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Carlson is currently 35 years old and would like to retire at age 60 (i.e. 25 years later). He wants to have enough savings when reaching 60 to support his post retirement life for 28 years (i.e. he expects he will die at around 88 years old). He would like to seek for your assistance in formulating his retirement plan.< Please refer to Appendices A to D for the relevant factors when calculating your answers.< 1. He would like to start constructing a budget for his retirement plan. Please advise Carlson what are the benefits of using budgets. 2. Based on the budget constructed, he estimated that he would spend $350,000 every year during his post retirement life. Assuming he could earn a 7% return per annum during his post retirement period, calculate how much retirement savings Carlson needs to have when he reaches 60 years old. 3. At the moment Carlson has a saving of $800,000. Assuming he could earn a 5% return per annum for the next 25 years: a. Would Carlson have enough retirement savings at 60 as calculated per (2) above?< b. If not, what is the approximate annual return Carlson's savings needs to achieve if he wants to have enough retirement savings at 60 as calculated per (2) above? 4. Carlson would like to make use of his current saving of $800,000 plus contributing a fixed amount of annual saving at the end of the coming 25 years to achieve the retirement saving as calculated per (2) above.< Calculate the annual savings Carlson needs to contribute during the next 25 years, assuming both the savings of $800,000 and the annuity could earn a 5% return per annum. 5. In order to achieve his retirement plan, Carlson would like to invest into the bond market. Advise Carlson SIX bond features.< Carlson is currently 35 years old and would like to retire at age 60 (i.e. 25 years later). He wants to have enough savings when reaching 60 to support his post retirement life for 28 years (i.e. he expects he will die at around 88 years old). He would like to seek for your assistance in formulating his retirement plan.< Please refer to Appendices A to D for the relevant factors when calculating your answers.< 1. He would like to start constructing a budget for his retirement plan. Please advise Carlson what are the benefits of using budgets. 2. Based on the budget constructed, he estimated that he would spend $350,000 every year during his post retirement life. Assuming he could earn a 7% return per annum during his post retirement period, calculate how much retirement savings Carlson needs to have when he reaches 60 years old. 3. At the moment Carlson has a saving of $800,000. Assuming he could earn a 5% return per annum for the next 25 years: a. Would Carlson have enough retirement savings at 60 as calculated per (2) above?< b. If not, what is the approximate annual return Carlson's savings needs to achieve if he wants to have enough retirement savings at 60 as calculated per (2) above? 4. Carlson would like to make use of his current saving of $800,000 plus contributing a fixed amount of annual saving at the end of the coming 25 years to achieve the retirement saving as calculated per (2) above.< Calculate the annual savings Carlson needs to contribute during the next 25 years, assuming both the savings of $800,000 and the annuity could earn a 5% return per annum. 5. In order to achieve his retirement plan, Carlson would like to invest into the bond market. Advise Carlson SIX bond features.<

Answer rating: 100% (QA)

1 The benefits of using a budget include Having a better understanding of ones income and expenses C... View the full answer