1. Bob’s Retirement Plan
YOUR PROFESSIONAL
CONSULTANTS
Abdullah Bin Gubair
T00526044

2. Data and Assumptions
Data
 Current Age (50)
 Retirement Age (65)
 CPI Rate (1%)
 Postretirement income 50% of final
salary
 Rate on return /year up to retirement
(5%)
 Rate on return/ year after retirement
(3%)
 Current Retirement fund ($150,000)
 College % invested (10%)
 Current Salary ($100,000)
 Bob’s Annual Contribution ($7,500)
Assumptions
 No other source of income
 CPI rate for worst scenario is 0% and
for the best one is 2.5%
 Rate of return up to retirement for
worst scenario is 0% and for the best
one is 10%
 Rate of return after retirement for the
worst scenario is 0% and for best
scenario is 7%
 College % invested 0% for worst
scenario and 20% for the best one.

3. Retirement Age 65
CPI Rate 3%
Postretirement Income % 50%
Rate of ROI up to retirement 10%
Rate of ROI after retirement 7%
College % Invested 20%
Your Annual Contribution $7,500
Retirement Age 50
CPI Rate 0%
Postretirement Income % 50%
Rate of ROI up to retirement 0%
Rate of ROI after retirement 0%
College % Invested 0%
Your Annual Contribution $7,500
Constructing the Model
Retirement Age 65
CPI Rate 1%
Postretirement Income 50%
Rate of ROI up to retirement 5%
Rate of ROI after retirement 3%
College % Invested 10%
Your Annual Contribution $7,500
Scenarios
Bob's

4. 101
• After retirement income $27,415
• Retirement Age 65
82
• After retirement income $58,048
• Retirement Age 65
72
• After retirement income $50,000
• Retirement Age 70
Best Scenario
Bob's
worst
scenario
Results
Age Run out of $

5. 68.00 73.00 78.00 83.00 88.00 93.00
Retirement age
Postretirement Income (% of his final salary)
Bob's Annual Contribution
Output Measure
Parameter
Tornado Sensitivity Chart
-10 Pct +10 Pct
Sensitivity Analysis
Retirement age Age no $
51 85
52 57
53 59
54 61
55 62
56 64
57 66
58 68
59 70
60 72
61 74
62 76
63 78
64 80
65 82
66 85
67 87
68 89
69 92
70 94
71 97
72 100
73 101
74 101
75 101

6. Recommendations
 Retirement Age 70
 CPI Rate 1%
 Postretirement Income 45%
 Rate of ROI up to retirement 5%
 Rate of ROI after retirement 4%
 College % Invested 10%
 Your Annual Contribution $6,500
Retirement
Age
Annual
Contribution
Income after
retirement
controllable
Run out of Money at age 101