Question: With regard to Brad's revised retirement plans: a. How much will he have in 30 years if he invests $ 300 per month at 8%?

With regard to Brad's revised retirement plans:

a. How much will he have in 30 years if he invests $ 300 per month at 8%? Do not consider the employer's matched contribution at this point.

b. How much will he have to save per month at 8% to reach his $ 500,000 goal in 20 years? In 30 years?

c. What impact could retiring 10 years earlier have on Brad's current standard of living?
d. If Brad takes advantage of his employer's match, what will be the impact on his retirement savings (assume an 8% return)?

e. What other options are available to Brad to save for his retirement? Give the pros and cons of each.

Future Value of an Annuity Payment per Year Number of Years Annual Interest Rate Future Value 30 8% Amount to Accumulate $500,000 Number of Years Annual Interest Rate Annual Deposit Monthly Deposit Amount to Accumulate $500,000 Number of Years Annual Interest Rate Annual Deposit Monthly Deposit 20 30 5% 8% Future Value of an Annuity Payment per Year Number of Years Annual Interest Rate Future Value Future Value of an Annuity Payment per Year Number of Years Annual Interest Rate Future Value 20 30 8% 8%

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a If Brad saves 300 per month or 3600 per year at 8 he will not reach his desired goal of 500000 Using the Future Value Tables 30 years at 8 is a fact... View full answer

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