This question is a thought experiment using the life cycle stages of individuals as described in the textbook. $($You may refer to MBA.com, Investopedia.com and other sources for salary information.$)(35$ marks total$)$

a$.$ 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. $(10$ marks$)$

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.

b$.$ Estimate your annual after$-$tax earnings for each year up to retirement. Again, try to be as specific as you can. $(5$ marks$)$

c$.$ This part of the question requires some time value of money skills $($Lesson $6).(20$ marks$)$

Given the costs of your 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 do your best to make this a realistic first attempt at a personal financial plan.

Note: We are looking for an honest attempt at applying some rudimentary financial principles to your own life cycle stages here, recognizing that a lot of your estimates will be subject to change and uncertainty.

Of course, we can$$t assess whether your plan will actually be feasible, and we aren$$t offering any investment or personal financial planning advice, so you could make it all up $($and that would be fine$).$ Aim to present a consistent, realistic application of the life cycle stages and time value of money skills for planning, and you will have accomplished for the intended outcome.

Also, recognize that this is only a preliminary financial plan $($an exercise$).$ You are advised to consult a financial planning professional before making any life decisions based on your answer to this question.