This paper concentrates on the primary theme of to plot a savings/investment plan to retirement reflecting your own situation, likely rates of return in your country or in the currency you expect to save it. in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
The Interim Assessment for Money Management
The principle here is that each of us should build a retirement nest egg over and above state, employee or private pensions, and in addition to any other sources of income like property or a business.
You are to plot a savings/investment plan to retirement reflecting your own situation, likely rates of return in your country or in the currency you expect to save it.
- Set a time horizon. Break into two parts if there is a major change such as children getting “off the payroll”.
- Choose an annual rate of return (and say whence you chose it).
- Estimate average annual inflation going forward and why
- Set amount and currency you can or wish to invest each year. Escalate with inflation or your expected earning power. (Note “1” above)
- Come to the total nest egg in the year of retirement.
- What is the value of that future nest egg in today’s currency (i.e. how has inflation eroded its purchasing power?)
Your answer should be submitted as an Excel file.
Male age 45
2 children age 4,5
Desired retirement age: 60 – assume death at age 85 with depleted assets
Non working spouse
$3,000 month to invest