Mr. and Mrs. Chan are both 35 years old now. They want to retire at 60....
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Mr. and Mrs. Chan are both 35 years old now. They want to retire at 60. Current annual income and annual expenses are HK$1,000,000 and HK$800,000 respectively. > Lumpsum pension at retirement is estimated to be HK$1,200,000. Assume their annual expenses (at present value term) after they retired will be 60% of their current level. Current resources available: HK$500,000. ➤ Assume the average inflation rate and aftertax investment return will be 3% and 7% per year. > Estimated life expectancy: 90 years old. How much additional fund, if applicable, they have to invest per year until they retire so that they have sufficient fund to support retirement? Please state all necessary assumptions. Now assume that, for some reasons, they are not able to keep regular annual savings but they will inherit a 15year old residential property from their parents in a few years. Are there any alternatives for them to ensure that they will have sufficient funds for retirement ? Mr. and Mrs. Chan are both 35 years old now. They want to retire at 60. Current annual income and annual expenses are HK$1,000,000 and HK$800,000 respectively. > Lumpsum pension at retirement is estimated to be HK$1,200,000. Assume their annual expenses (at present value term) after they retired will be 60% of their current level. Current resources available: HK$500,000. ➤ Assume the average inflation rate and aftertax investment return will be 3% and 7% per year. > Estimated life expectancy: 90 years old. How much additional fund, if applicable, they have to invest per year until they retire so that they have sufficient fund to support retirement? Please state all necessary assumptions. Now assume that, for some reasons, they are not able to keep regular annual savings but they will inherit a 15year old residential property from their parents in a few years. Are there any alternatives for them to ensure that they will have sufficient funds for retirement ? Mr. and Mrs. Chan are both 35 years old now. They want to retire at 60. Current annual income and annual expenses are HK$1,000,000 and HK$800,000 respectively. > Lumpsum pension at retirement is estimated to be HK$1,200,000. Assume their annual expenses (at present value term) after they retired will be 60% of their current level. Current resources available: HK$500,000. ➤ Assume the average inflation rate and aftertax investment return will be 3% and 7% per year. > Estimated life expectancy: 90 years old. How much additional fund, if applicable, they have to invest per year until they retire so that they have sufficient fund to support retirement? Please state all necessary assumptions. Now assume that, for some reasons, they are not able to keep regular annual savings but they will inherit a 15year old residential property from their parents in a few years. Are there any alternatives for them to ensure that they will have sufficient funds for retirement ? Mr. and Mrs. Chan are both 35 years old now. They want to retire at 60. Current annual income and annual expenses are HK$1,000,000 and HK$800,000 respectively. > Lumpsum pension at retirement is estimated to be HK$1,200,000. Assume their annual expenses (at present value term) after they retired will be 60% of their current level. Current resources available: HK$500,000. ➤ Assume the average inflation rate and aftertax investment return will be 3% and 7% per year. > Estimated life expectancy: 90 years old. How much additional fund, if applicable, they have to invest per year until they retire so that they have sufficient fund to support retirement? Please state all necessary assumptions. Now assume that, for some reasons, they are not able to keep regular annual savings but they will inherit a 15year old residential property from their parents in a few years. Are there any alternatives for them to ensure that they will have sufficient funds for retirement ? Mr. and Mrs. Chan are both 35 years old now. They want to retire at 60. Current annual income and annual expenses are HK$1,000,000 and HK$800,000 respectively. > Lumpsum pension at retirement is estimated to be HK$1,200,000. Assume their annual expenses (at present value term) after they retired will be 60% of their current level. Current resources available: HK$500,000. ➤ Assume the average inflation rate and aftertax investment return will be 3% and 7% per year. > Estimated life expectancy: 90 years old. How much additional fund, if applicable, they have to invest per year until they retire so that they have sufficient fund to support retirement? Please state all necessary assumptions. Now assume that, for some reasons, they are not able to keep regular annual savings but they will inherit a 15year old residential property from their parents in a few years. Are there any alternatives for them to ensure that they will have sufficient funds for retirement ? Mr. and Mrs. Chan are both 35 years old now. They want to retire at 60. Current annual income and annual expenses are HK$1,000,000 and HK$800,000 respectively. > Lumpsum pension at retirement is estimated to be HK$1,200,000. Assume their annual expenses (at present value term) after they retired will be 60% of their current level. Current resources available: HK$500,000. ➤ Assume the average inflation rate and aftertax investment return will be 3% and 7% per year. > Estimated life expectancy: 90 years old. How much additional fund, if applicable, they have to invest per year until they retire so that they have sufficient fund to support retirement? Please state all necessary assumptions. Now assume that, for some reasons, they are not able to keep regular annual savings but they will inherit a 15year old residential property from their parents in a few years. Are there any alternatives for them to ensure that they will have sufficient funds for retirement ?
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To calculate the additional funds that Mr and Mrs Chan need to invest per year to support their retirement we can use the following approach 1 Estimat... View the full answer
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 9780134730363
8th edition
Authors: Arthur J. Keown
Posted Date:
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