Turnmeyer - Pre-modeling Assessment - Assignment 1 - CIS331

Turnmeyer - Pre-modeling Assessment - Assignment 1 - CIS331...

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Turnmeyer – Pre-modeling Assessment – Assignment 1 – CIS 331 1. A) What do we know? At 46 years old = salary is 126,000 Retirement between age 62-67 Current Retirement Savings = $137,000 Employer contributes “around” $10,000 yearly Self contributes $7,500 yearly 1. B) What can we assume? Income grows at a constant rate – preretirement The savings rate is a constant percentage of income in the final year of work Retirement assets provide a fixed rate of return The retirement date is fixed Postretirement consumption is a fixed percentage of income in the final year of work 1. C) What could the results look like? Project our income from present to retirement (at an assumed growth rate) Calculate our retirement contributions (given a constant savings rate) Accumulate our retirement assets (at some assumed rate of growth) Project our assets as they are drawn down during retirement (at the assumed consumption rate) Determine the year in which they are exhausted
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Turnmeyer - Pre-modeling Assessment - Assignment 1 - CIS331...

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