(CIS331 -SystmMdlngThry) Figures 5.3 1.0

(CIS331 -SystmMdlngThry) Figures 5.3 1.0 - Retirement...

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

View Full Document Right Arrow Icon
Retirement Planning Parameters Results Tornado chart inputs Current income $116,000 Year funds out 74 Base Case 10th Percentile 90th Percentile Current savings $167,000 Return on assets Employer savings rate 10% pre-retirement 7% 5.00% 12.00% Current savings $9,500 post-retirement 5% 3.00% 8.00% Age 46 Income growth rate (include 4% 0.00% 6.00% Return on assets Inflation pre- and post-retire 3% 1.00% 5.00% pre-retirement 7% Tax rate post-retirement 5% pre-retirement 35% 30.00% 40.00% Income growth rate (includes inflation) 4% post-retirement 25% 20.00% 30.00% Inflation pre- and post-retirement 3% Current tax cap $12,000 $12,000 $12,000 Tax rate Future tax cap $15,000 $15,000 $20,000 pre-retirement 35% Current consumption spendi $5,500 $5,500 $5,500 post-retirement 25% College fund $24,000 $24,000 $24,000 Current tax cap $12,000 College fund target $100,000 $80,000 $120,000 Future tax cap $15,000 College fund return 6% 4% 8% Current consumption spending $5,500 Retirement travel costs $30,000 $20,000 $45,000 College fund $24,000 College fund target $100,000 College fund return 6% Personal savings rate 12.50% 10.00% 15.00% Retirement travel costs $30,000 Percent of final income spen 70% 60.00% 90.00% Retirement age 65 60 70 Decisions Personal savings rate 5.00% Percent of pre-ret. consumption spent 70% Retirement age 65 Model Personal Total Personal PRE-RETIREMENT Employer Contribution College College Contribution Beginning of End of POST-RETIREMENT Beginning of End of Funds depleted? Age Tax Cap Salary contribution (before tax) Contribution Fund (after tax) Year Assets Year Assets Age Spending Withdrawal Year Assets Year Assets 1=Yes 46 $12,000 116,000 $11,600 $5,800 $5,800 $31,240 $0 $167,000 $190,290 65 $133,617 $178,156 $1,467,571 $1,362,794 0 47 $12,000 120,640 $12,064 $6,032 $6,032 $39,146 $0 $190,290 $215,674 66 $137,626 $183,501 $1,362,794 $1,247,432 0 48 $12,000 125,466 $12,547 $6,273 $6,273 $47,768 $0 $215,674 $243,318 67 $141,754 $189,006 $1,247,432 $1,120,798 0 49 $15,000 130,484 $13,048 $6,524 $6,524 $57,159 $0 $243,318 $273,399 68 $146,007 $194,676 $1,120,798 $982,162 0 50 $15,450 135,704 $13,570 $6,785 $6,785 $67,373 $0 $273,399 $306,107 69 $150,387 $200,516 $982,162 $830,754 0 51 $15,914 141,132 $14,113 $7,057 $7,057 $78,472 $0 $306,107 $341,648 70 $154,899 $206,532 $830,754 $665,759 0 52 $16,391 146,777 $14,678 $7,339 $7,339 $90,520 $0 $341,648 $380,241 71 $159,546 $212,728 $665,759 $486,320 0 53 $16,883 152,648 $15,265 $7,632 $7,632 $103,583 $0 $380,241 $422,122 72 $164,332 $219,110 $486,320 $291,526 0 54 $17,389 158,754 $15,875 $7,938 $0 $109,798 $7,938 $422,122 $475,484 73 $169,262 $225,683 $291,526 $80,419 0 55 $17,911 165,104 $16,510 $8,255 $0 $116,386 $8,255 $475,484 $533,534 74 $174,340 $232,453 $80,419 -$148,013 1 56 $18,448 171,708 $17,171 $8,585 $0 $123,369 $8,585 $533,534 $596,637 75 $179,570 $239,427 -$148,013 -$394,841 1 57 $19,002 178,577 $17,858 $8,929 $0 $130,771 $8,929 $596,637 $665,188 76 $184,957 $246,610 -$394,841 -$661,193 1 58 $19,572
Background image of page 1

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

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

Page1 / 7

(CIS331 -SystmMdlngThry) Figures 5.3 1.0 - Retirement...

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