Retirement Planning
| Current Year |
2016 |
| Age |
37 |
| Current Savings |
$259,000 |
| Rate of return on retirement savings |
7.00% |
| Current Annual Salary |
$145,000 |
| Expected Annual Salary Incease |
2.00% |
| % of Salary contributed |
6.00% |
| Expected Age of retirement |
65 |
| % employer contribution |
5.00% |
| Annual Employee (tax free) contributions |
$6,000 |
| Inflate Rate |
2.00% |
|
|
In excel
2a) Prepare a spreadsheet indicating the value of retirement fund on a yearly basis when retiring at age of 65.
2b) what is the net present value of the retirement fund at retirement age assuming an inflation rate of 2.0%?
2d) prepare a data table when the rate of return on investments varies from 5% to 9% with 0.5% increment and contribution by employers varies from 3% to 10% with a 1% increment. Attach table to this assignment.
2e) What should be the annual employee contribution if she desires to retire with $2,300,000 in savings?