Question: SCENARIO: A client comes to you for some advice. This client has $ 2 4 0 0 saved for a car in an investment and

SCENARIO: A client comes to you for some advice. This client has $2400 saved for a car in an investment and has $450 a month to invest for the future and has multiple goals: 1) save for a car, 2) save for retiremeot, 3) save for college in a 529 account. Assume the client is 30 and will retire at 65, so there are 35 full years untili retirement. The clientismodest with cars, keeps.them as long as possible, keeps them in decent condition and their current car is 12 years old. They believe their current car will last 6 more years and they are hoping to have around $25,000 for their new car. (These are general numbers based on the client's beliefs about the future but there is wigele room and the client is witing to listen to your judgment). Assume the rate of return for the investment going towards the car is 4%, the retirement account has an average 7% rate of return, and the 529 account has a 5% rate of return. The client has 18 years to invest in the 529 account and hopes to have $40,000 in the account. The client is wondering how to split the $500 between the imestments to achieve their goals, and how much they will have in retirement under your suggestion. The client is looking for $300,000 in retirement. In your base scenario, assume a fixed amount goes into each investment even after saving for the car is "complete", as most likely they will have to continuirglaving for another car/car mainfenance so the amoint they are putting in retirement and 529 each month does not changt
SCENARIO: A client comes to you for some advice.

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