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Data Analytics Exercise XPrepared by Honeylyn Bravo, Karen Calangi, Shinia Wolfe200432796, 200451641, 200438496Prepared for Dong YeCMIS2250 Section A05Date of Submission: Tuesday, August 11, 2020Northern Alberta Institute of Technology
1.Explore the messA.What do we know?i.Bob Davidson; 46 years oldii.Bob, professor iii.Bob daughter; Sueiv.Daughter, 6 years oldv.Bob married vi.Wife, Margaret vii.Margaret, 40 years oldviii.Margaret, potter ix.Margaret, earns no appreciable incomex.Margaret, married previouslyxi.Margaret, had various jobs prior to being married to Bob xii.Margaret, had jobs involving software programming and customer supportxiii.Grandfather, died at 42 xiv.Father, died 58 xv.Both died from cancer though unrelated instances xvi.Bob has excellent healthxvii.Bob runs and skisxviii.No inherited diseases in the family (except glaucoma)xix.Bob cholesterol last count was 190xx.9-month salary is currently $95,0001.With additional 10% into retirement fund2.Additional 2 months of his regularly salary for his research 3.College doesn’t pay retirement benefits on additional research moneyxxi.Worked at college for 12 yearsxxii.Salary has increased by 4 – 15% per year1.Doesn’t expect this to increase in future due to faculty salaries being subject to severe compressionxxiii.Additional income; $10,000 – 20,000 per year from consulting, executive education and other activitiesxxiv.Bob, is currently setting aside $7,500 per year (before tax) 1.The max he can contribute is $10,000; this limit rises with inflation2.If he were to increase savings toward retirement, he’d have to invest after-tax dollars3.All retirement savings are invested TIAA-CREF xxv.As by law, he has contributed to social securityxxvi.Has had problems with social security trustxxvii.Bob is uncertain the level of benefits he will receive upon retirement from social security trustxxviii.Bob’s TIAA-CREF holdings is currently $137,0001.Invested 20% in TIAA long term bond fund2.invested 80% in Global Equity Fund Honeylyn Bravo, Karen Calangi, Shinia Wolfe
a.Global Equity fund is invested roughly 40% in US equities and 60% non-U.S. equities b.With new contributions are allocated in these same proportionsxxix.Net worth consists of:1.Retirement assets2.Home (purchase price $140,000 in 1987; current equity is $40,000)3.Rainy-day fund; $50,000 (invested in short term money market mutual fund with fidelity investments)4.Fidelity Growth and Income Fund; $24,000, for his daughter’s college tuition5.Term Life Insurance policy; $580,000a.No asset valueb.Pays its face value (plus inflation) as long as he pays premiums6.No outstanding debt in addition to mortgage, besides monthly credit card chargesxxx.If he dies while insured; proceeds of life insurance are tax free and given to his wifexxxi.If he dies before retirement, retirement assets go tax free to wife as wellxxxii.Retirement assets can be converted into annuities without any immediate taxation1.The monthly income from the annuities is then taxed as ordinary incomexxxiii.Bob’s mother; 72,xxxiv.Bob’s mother, good health, xxxv.Bobs mother, retired xxxvi.