Models, Spreadsheet Engineering, and Scenarios Overview This assignment covers three topics modeling, spreadsheet engineering, and scenarios. Modeling Begin to translate the given scenario into a model: The client currently is 46 years old, with an income of about $126,000 per year. His goal is to retire between age 62 and 67 and to have enough savings to live comfortably in about the same fashion he does now (with some money available for expanded travel). The clients accumulated savings for retirement total $137,000. His employer contributes around $10,000 per year into the retirement fund, while he has been contributing $7,500. How much should he be saving? After reading this and getting an idea of how to conduct this you may now: 1. Create an influence chart. 2. List the key (you must determine which values are important) inputs that can be extracted from the information given. a. Questions to get you started: i. What do we know? ii. What can we assume? *** iii. What could the results look like? iv. What can we ask the client? v. Are there any similar situations or problems ***State any assumptions that you needed to make in order for this to be as stable and consistent as possible Spreadsheet Engineering Create a decision support system spreadsheet to help calculate the length that the money will last in retirement. While constructing the spreadsheet ensure that you follow the guidelines isolate inputs and calculations, organize data clearly, and make the results clear. Your sheet can be structured as you please as long as it is clear and effective the data and calculations may dictate that you construct your calculations following a different format than the example. Note: There is ambiguity here, that is part of the assignment. Determine, as accurately as you can, the most likely scenario (i.e. the base case) for how long the money will last. You will have incomplete information and you will have superfluous information; sorting through the information, evaluating importance, and filling in gaps is part of the challenge. Scenarios Use the scenario manager to create two additional scenarios that can be compared to the baseline that youve already created: 1. Increase post-retirement spending by 7.5%, increase retirement savings rate by 10%. 2. Decrease post-retirement spending by 10%, decrease earnings by 5%.

Grading Deliverables The deliverables for this assignment are: A spreadsheet containing: o A sheet with your answers for all of the written questions (in order and clearly labeled). o Your DSS. Note: Your submitted file(s) MUST match the specified format. Rubric Question Weight Questions 25% Spreadsheet 60% Sensitivity 15%