How much additional capital would they need to have

Assignment Help Financial Accounting

Reference no: EM132776174

Question - Troy and Kristy Reynolds (both currently 56) have determined that they will require retirement income equal to $93,000 in today's dollars, based on their current income. They plan to retire in 8 years and wish to assume an after-tax return on their investments, prior to retirement, of 8%. They plan to readjust their assets after retirement and believe that their net return will drop to 6%. Troy's parents are both in their late eighties, and Kristy's parents are in their seventies. Troy and Kristy assume that retirement will last for 30 years, and that inflation will average 2%. If the Reynolds wanted to leave a specific bequest to their favorite charity (Wounded Warrior Project) in the amount of $2million (actual donation at death), how much additional capital would they need to have accumulated at the time they retire at age 64?

Reference no: EM132776174

Questions Cloud

Prepare a table that shows the ownership interest percentage : Prepare a table that shows the ownership interest percentages in the two subsidiaries distinguishing between direct and indirect interests.

Describe the process for families : Do a web search for local, state, regional, international organizations which support children with health and motor related needs

What is the agency cost arising from the excess cash : Suppose the marginal corporate tax rate is 20%, what is the agency cost arising from the excess cash before the repurchase

What is the minimum amount of water : What is the minimum amount of water (in grams) required to completely dissolve 60.0 g of KCl at 90°C?

How much additional capital would they need to have : If the Reynolds wanted to leave a specific bequest to their favorite charity in the amount of $2million, how much additional capital would they need to have

What are audit requirements of ixbrl data for eu corporation : What are the audit requirements of iXBRL data for EU corporations filing under the new ESEF, which went into effect on January 1, 2020?

Discuss the hospitality sector workforce regulations in ksa : How might a staff human resources specialist in a multiunit organization assist a property manager with the basic human resources activities noted in Figure 5.

Describe what each of the xbrl terms mean : What are the benefits to an investor or financial analyst of using financial statements prepared in XBRL? Name two benefits and explain why.

What is the expected selling price of the bonds : At the time of issuance, the market interest rate for similar types of bonds was 8%. What is the expected selling price of the bonds

User Account

All Pages