How much should she be saving at the end of each year

Assignment Help Finance Basics

Reference no: EM133377601

Question: Margaret is 35 years old and plans to retire at age 67. She wants an income of $67,500 per year, after tax, in today's dollars, to last until the age of 90. She anticipates her employer pension income will be $52,000 per year, before taxes, and that she will earn $12,000 from CPP and OAS (combined). Pension benefits are to be received at the beginning of each year, the average tax rate (ATR) after retirement is anticipated to be 22%, the weighted average nominal return (before inflation) during retirement is approximated at 7%, before retirement at 12%, and the average inflation is expected to be 3%. How much should she be saving at the end of each year leading up to retirement, to reach her retirement income goal? Remember to use the 7 step goal-based retirement planner and the REAL rate of return for the projections during retirement. a) $6,169 b) $6,517 c) $2,942 d) $2,296

Reference no: EM133377601

Questions Cloud

Why are financial intermediaries : Why are financial intermediaries (financial markets and institutions) absolutely critical to the success of our economic system and individuals/companies within

How many planets do we need if everybody lives like you : How many planets do we need if everybody lives like you? When is your personal Overshoot Day?

What would its cost of equity be if it took on the average : software industry is 13%. What would its cost of equity be if it took on the average amount of debt for its industry at a cost of debt of 6%

Why is a self-managing organization a good idea : Is a self-managing organization a good idea? Why or why not? Could Zappos have done anything to make the transition to the new system smoother? If so, what?

How much should she be saving at the end of each year : How much should she be saving at the end of each year leading up to retirement, to reach her retirement income goal? Remember to use the 7 step goal-based

What is the pension adjustment (pa) for johns defined : What is the pension adjustment (PA) for john's defined benefit pensionable earnings of $48,685 this past year, if his plan provides a 2% benefit?

Calculate the cost of existing debt : Calculate the weighted average cost of capital (WACC) for existing capital and Calculate the weighted average cost of capital (WACC) for new capital

What database management system was used for the database : What database management system was used for the database? Did you like the database? Why or why not? Or, share a link to an article on a company

How this affects a public health professional : Describe differences and similarities, impact on women, contributing factors to the issue, actions being taken, and how this affects a public health professiona

User Account

All Pages