QUESTION 8 RETIREMENT PLANNING A Your client, Daniel Ng, is 35 years old and currently drawing RM108,000 00 annually He plans to retire at age 60 and expects to expire at the ripe age of 80 Assume the following The average inflation rate during his working life to be 5 00 p a and expect his annual salary will increase by this rate Desired constant annual income upon commencement of retirement is 60 of last drawn salary By retirement age, he would have accumulated a total sum of RM1 75 million from EPF and his other investments The average return on investments during his working and retirement period is 8 5 p a How much does he need to save annually to meet his retirement objective

The Answer is in the image, click to view ...

Question: QUESTION 8: RETIREMENT PLANNING A. Your client, Daniel Ng, is 35 years old and currently drawing RM108,000.00 annually. He plans to retire at age 60

QUESTION 8: RETIREMENT PLANNING

A. Your client, Daniel Ng, is 35 years old and currently drawing RM108,000.00 annually. He plans to retire at age 60 and expects to expire at the ripe age of 80. Assume the following:

The average inflation rate during his working life to be 5.00% p.a. and expect his annual salary will increase by this rate.
Desired constant annual income upon commencement of retirement is 60% of last drawn salary.
By retirement age, he would have accumulated a total sum of RM1.75 million from EPF and his other investments.
The average return on investments during his working and retirement period is 8.5% p.a.

How much does he need to save annually to meet his retirement objective?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Complete this question by entering your answers in the tabs below. Required 1Required 2Required 3 Required 4 You have estimated that your educational expenses over the next four years will be $14,900...

QUESTION 8: RETIREMENT PLANNING A. Your client, Daniel Ng, is 35 years old and currently drawing RM108,000.00 annually. He plans to retire at age 60 and expects to expire at the ripe age of 80....

QUESTION 9: RETIREMENT PLANNING Your client, Jimmy Chee, is 30 years old and currently pays RM120,000 annually. He plans to retire at age 55 and expects to expire at the ripe age of 75. Assume the...

Hi I know you opted out of an earlier question. I have several open questions. I really need to get them in. Would you be willing to take any of these questions? I have been waiting for 3 days. I...

I need to get help with this case study PwC Case Studies in Taxation, 2013, PwC, LLP FLATIRONS, INC. Flatirons, Inc. (dba Flatirons Flapjacks Caf) specializes in unique breakfast and brunch menus and...

Please give detailed explanations of your answers to each question. 1. The minimum rate of return that an investor must receive to invest in a project is most likely known as the: A. the required...

Time Value of Money Case Study: ABC Wealth Advisors As a newly recruited MBA in a financial consultancy firm, in order to test your knowledge of Time Value of Money , you have been given the task of...

FIN 4140 Chapter 2 Homework - Saved to this PC References Mailings Review View Help FOXIT PDF O Tell AaBbCcDc AaBbCcDc AaB 1 Normal 1 No Spac... Headir .EE E- Paragraph Style Solve the following...

Question 1: Janet is 35 years old who works in McKenesy and Caompany and planning to rresign in 25 years when she will be 60 years old and she will live until 105. There are total of 45 payments will...

Researchers at The Wharton School of Business have found that men and women shop for different reasons. While women enjoy the shopping experience, men are on a mission to get the job done. Men do not...

. The problem statement should include all of the following EXCEPT: processing. output. storage. input. Question 6 (1 point) A process that concerns completing and settling the terms of the contract...

Some asset management ratio comparisons can be skewed if you compare your firm s ratios with another firm that: Answer uses quite a bit more debt than your firm. has assets that are similar in age to...

I need help with question 3 only. I am pretty confused on how to incoporate event decomposition into use case diagrams. Recall the On the Spot courier service introduced in Chapter 2. The details of...