Facts: Bob age 40/Sue age 40 (2020)Plan to Retire Bob Age 65 Assume a discount rate of
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Question:
Facts: Bob age 40/Sue age 40 (2020)…Plan to Retire Bob Age 65
Assume a discount rate of 6% (all pensions & oas)/ 7% return on investments
Assume both receive Max CPP of $11,500 and OAS $6400 in 2020 $Cdn at age 65
Desired Income age 65 to 95 is $67,000 (or $33,500 each) in 2020 $CDN
Ignore inflation & taxes.
Tasks:
1. How much do they need (Lumpsum) at age 65 to fund the retirement goal?
2. How much will the government pensions provide? Is there a surplus or shortfall.
3. If a shortfall, how much needs to be saved monthly?
4. If, Bob was to receive a $28,080 company pension at age 65 (2020 $Cdn), how would this change? Redo 2. & 3.
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