Retirement budget

Description

New solution updates


Question

Please show all possible steps in Excel Document Preview: FI850 – Spring 2014 Project 3: Financial Planning Due: May 9, 2014 Assume that you will be graduating from a university with your MBA in December of this year. You will start your new job in January of 2015 with an annual salary starting at $65,000.00. Your salary will typically increase every year by 7%. You will work a total of 45 years and then retire. You plan to get married four years after you start your new job, and you budget $10,000 for wedding and honeymoon expenses. Once married, you plan to have two children, one who will be born in 2019, and the other one will be born in 2021. You want to save enough money to allow your children to attend your Alma Mater and earn a 4-year undergraduate degree (they have to fund their graduate degree themselves). Currently, the total one academic year cost for Kansas residents is $12,801. Your children will start college in January of 2037 and 2039, respectively. Assume an annual average increase in college expenses of 4.2%. Further assume that you need to pay for college expenses in January for the entire year. Also shortly after getting married you want to buy a house. To meet the needs of your family you expect the house to cost about $100,000 when you buy it at the end of 2018. To obtain a mortgage you want to make a down payment of 5% of the purchase price. Upon retirement you want to take your spouse on a 12-month trip around the world, which you expect would cost you currently approximately $100,000. The trip expenses have to be paid right at retirement when the journey begins. After you return from your trip, you expect you will need approximately $40,000 per year, using today’s cost of living. You expect to live for another 19 years after you return from your trip. During your work life you expect to earn about 10% annual return on your investments. During retirement you switch your portfolio to more risk-averse assets, which will then earn you an annual return of 7%. You budget for a 6% annual... Attachments: Retirement-Pr....docx

 

Solution ID:565813 | This paper was updated on 26-Nov-2015

Price : $24
SiteLock