Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

problem1. Eleanor requires $40,000 a year to live on in retirement net of the income she will get. She will be retiring in 22 years and is funding for 25-year retirement. The inflation rate is anticipated to be 3.5 percent a year and the after-tax return on her investments percent.

a. How much will the short fall amount to at beginning of retirement period?

b. What lump sum will she need at beginning of retirement period?

c. What is the required annual savings?

problem2. Frank, age 28, wants to compute his resources in real (inflation-adjusted) terms. find out the amount of resources made accessible by age 65 retirements if $18,000 a year is saved. Suppose that outflows from ages 65 to 90 are at the rate of $27,000 a year. The projected inflation rate is 4 percent, and the expected investment return is 6 percent.

a. How much in new savings will Frank have accessible at age 65 before subsequent withdrawals?

b. How much will he have left at an age 90?

c. What is the present value of that sum at an age 65?

d. How much will he have to save per year to exactly meet his requirements?

problem3
. The smiths had $110,000 in savings at age 51. They had a desired retirement age of 65. They desire to fund through age 92. Suppose a 4 percent inflation rate and a 5 percent after-tax rate for investment both pre- and postretirement. They have household income of $140,000, which is rising at the rate of inflation. Their expenditures consisting of taxes are $125,000 a year. They estimate that in retirement they will get $28,000 a year together in Social Security and Mr. Smith will receive a $12,000-a-year pension, both in today’s dollars. Their retirement expenses would be $90,000 a year in today’s dollars.

1. find out:

a. The lump sum needed at retirement.

b. Current assets available at retirement

c. Annual savings required.

d. The differentiation between needs and resources.

2. Analysis:

a. Is their retirement plan attainable as is?

b. If not, what are the alternatives which could help reconcile needs and resources?

c. What is your recommendation?

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93292
  • Price:- $70

Priced at Now at $70, Verified Solution

Have any Question? 


Related Questions in Financial Accounting

1 share a brief definition of each of the three types of

1. Share a brief definition of each of the three types of recognition systems. Which system in your opinion would be the most effective at motivating a team? Why? Is it better for a company to choose one system or integr ...

Part 1 please respond the following question no less then

PART 1 PLEASE RESPOND THE FOLLOWING QUESTION NO LESS THEN 350 WORDS (ORIGINAL WORK, NO PLAGIARISM, 1 Reference Part 1 of our week discussion questions require us to discuss Profitability. Please watch this Youtube lectur ...

Intermediate accounting assignmentpart 11 the receipt of

Intermediate Accounting Assignment Part 1 1) The receipt of interest on loans would be reported on a statement of cash flows under the: A) Financing B) operating activities C) investing activities D) Interest received on ...

Assignment1 benzton inchad sales of 1200000 during 2015

Assignment 1. Benzton Inc.had sales of $1,200,000 during 2015. Twenty-five percent of these were cash sales. In addition to the 2015 cash sales, $569,400 of the 2015 credit sales were collected during the year. $30,000 o ...

Assignment reorganizations and consolidated tax

Assignment: Reorganizations and Consolidated Tax Returns Suppose you are a CPA, and you have a corporate client that has been operating for several years. The company is considering expansion through reorganizations. The ...

On january 1 2004 digital inc leased heavy machinery from

On January 1, 2004, Digital, Inc. leased heavy machinery from Young Leasing Company. The terms of the lease require annual payments of $20,000 for twenty years beginning on December 31, 2004. The interest rate on the lea ...

Assignmentconstructive retirement at beginning of year

Assignment Constructive Retirement at Beginning of Year (Effective Interest Method) Able Company issued $690,000 of 7 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years and pay interest ...

Assignment financial reporting and analysisyou are required

Assignment: Financial Reporting and Analysis You are required to prepare an investigative report on a recent corporate scandal that involve improper accounting practices or any form of financial scandal. The report must ...

Rob leslie induced people to invest their savings in a

Rob Leslie induced people to invest their savings in a business venture that he represented to be risky. Because the planned venture never became operational, Leslie never applied the investors' funds in the way he promi ...

Nmims global accessschool for continuing education

NMIMS Global Access School for Continuing Education (NGA-SCE)  Course: Financial Accounting and Analysis  _____________________________________________________________________________ Question1. Following information is ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen