What amount currently have in savings

Assignment Help Accounting Basics

Reference no: EM132080897

Question: Tom and Debbie are starting to take their retirement planning seriously. They are both 46 and plan to retire in 20 years at the age of 66. They expect to live 15 years in retirement (a life expectancy of 81). Between their 401k and IRA accounts they currently have $67,966 in retirement savings. They currently have a combined income of $88,000 per year and expect to be able to live comfortably in retirement with 80% of their current purchasing power. They expect inflation to be 2% per year for the rest of their lives. They also expect to earn 11.0% per year (the average return on Blue Chip stocks) on their investments, both now and in retirement. Conduct an analysis of their retirement planning needs and provide them with a professionally written letter. In the letter and attached schedules provide information that answers the following questions. Please include a description of the relevant assumptions and any explanatory comments that make the results easier to understand.

Taking into account what they currently have in savings, how much will they have to save each month to meet their retirement needs?

Reference no: EM132080897

Questions Cloud

Provides packaging consulting services to businesses : A new start-up service company provides packaging consulting services to businesses.

Think would be the most beneficial to company : Which analytics to you think would be the most beneficial to a company? Why?

Potential output level : Why is it hard for policy makers to decide whether the economy is operating at its potential output level?

Disruptive technology and innovations : Does labor market benefits from technology and innovations? What about if we consider disruptive technology and innovat

What amount currently have in savings : Taking into account what they currently have in savings, how much will they have to save each month to meet their retirement needs?

How can mass hysteria be prevented within the population : What should the federal government share with the state, and can this information be controlled?How can mass hysteria be prevented within the population?

Understand the best strategy : Can a tutor please help understand the best strategy that an investor can use in the bull markets either by using option or by using the futures.

Payback period and ignore the use of npv : On the other hand, I still also cannot get exactly why some investors will also prefer to use the payback period and ignore the NPV

What was bachman flexible budget variance : Timmer Bachman founded the Bachman Corporation over 25 years ago. The company's genesis was spurred by the unique climbing apparatus developed by Timmer.

User Account

All Pages