ME12CASE09 - 8.10% Constraints 1=Yes, 0=No At least 25% in...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CASE 9 A LP Retirement Income Funding Model Before-tax After-tax Capital Amount Percent Before-tax After-tax Asset yield yield Appreciation invested invested income income Common Stocks 3.50% 2.45% 6.50% $125,000 50.00% $4,375 $3,063 Long-term taxable bonds 6.00% 4.20% 1.50% $62,500 25.00% $3,750 $2,625 Medium-term tax-exempt bonds 4.00% 4.00% 1.00% $50,000 20.00% $2,000 $2,000 Short-term money market mutual fund 4.50% 3.15% 0.00% $12,500 5.00% $563 $394 Total $250,000 100.00% $10,688 $8,081 Total return (weighted average)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 8.10% Constraints 1=Yes, 0=No At least 25% in stocks? TRUE No more than 50% in stocks? TRUE At least 5% in long-term taxable bonds? TRUE At least 5% in short-term tax-exempt bonds? TRUE At least 5% in money market? TRUE Not over 75% in stocks plus long-term taxable bonds? TRUE At least $30,000 in money markets plus medium-term tax-exempt bonds? TRUE After-tax income at least $6,000? TRUE Total return at least 7%? TRUE...
View Full Document

Page1 / 2

ME12CASE09 - 8.10% Constraints 1=Yes, 0=No At least 25% in...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online