Please describe one savings goal you might pursue at each of the four life cycle stages. As specifically as possible, assess the future cost of each goal. Ignore inflation and assume that the cost then will be the same as the cost now. For example, let's say you are 20 years old and will graduate from university in two years, at age 22. Then you will work for four years to pay off your student loans, after which you intend to go back to school to get an MBA. After completing your MBA, you will buy a house. You will take a family trip to Europe when your kids are old enough to appreciate it, and then you plan to retire at age 60. You would need to explore costs for the MBA, the house, the trip, and retirement.
 

Also estimate your annual after-tax earnings for each year up to retirement. Please be  specific as much as you can.

Finally, given the costs of the goals in part a, and assuming you can earn a real return of 5% on any savings for the rest of your life, determine a feasible personal financial savings plan for savings, using your answers to parts a and b that will allow you to retire as comfortably as you want. State your assumptions, and please make this a realistic first attempt at a personal financial plan. 

Answer rating: 100% (QA)

Life Cycle Stage 1 Young Adult Age 2030 Savings Goal Pursue Higher Education MBA Cost Estimate The cost of an MBA program varies widely depending on t... View the full answer