Situation $1.$ Retirement Planning

The client currently is $45$ years old, with an income of about $$100,000$ per year. His goal is to retire between ages $63$ and $68$ and to have enough savings to live comfortably in about the same fashion he does now $($with some money available for expanded travel$).$ The client$$s accumulated savings for retirement total $$120,000.$ His employer contributes $$9,500$ per year into the retirement fund, while he has been contributing $$7,000.$

QS$1-$ How much should he be saving?

Guidelines: Submit a one$-$ page answer for each situation $($not including the requested diagrams. The whole deliverable for each Situation can take at the most $2$ pages, including these graphs of diagrams$).$ Aim for conciseness. You have to address the following questions.

Q$1.$ Answer concisely the following questions:

A$-$ What do we know?

B$-$ What can we assume?

C$-$ What could the results look like? $($Check consistency with your problem statement in Q$2)$

D$-$ What can we ask the client?

E$-$ Are there any similar situations or problems? $[$Be creative and specific$]$

Q$2.$ Formulate one or more problem statements $($aim to link key decisions to the main outcome$)$

Q$3.$ What are the decisions, outcomes, and relationships in the problem? $\{$Make sure what you mention here is consistent with your diagram in Q$4.$ In Q$7$ you will mention only the key variables out of the ones mentioned here$)$

Q$4.$ Draw an influence chart of the problem $($use the shapes suggested in the Powell and Blatt book. Use $.$ppt or words to draw a professionally looking diagram.$)$ Please show diagram that was made on paper or screen.

Q$5.$ In what ways could we simplify the problem? $($Hint: Think about modules or assumptions$)$

Q$6.$ What modules will we need to build? $[$Be consistent with your chart from Q$4$ and explain what will be estimated in each module$]$

Q$7.$ What are the key relationships in the problem? Describe them:

$$ Be explicit to mention details about the relationship. For instance: increasing, constant or decreasing; linear, quadratic, exponential, etc.

$$ If possible, draw the graph that depicts the relationship in a graphic way $[$even a qualitative graph is better than none$].$ Include at least $2$ graphs based on the key variables.

Q$8.$ What are the parameters of the problem? $[$Be consistent with your chart from Q$4]$