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Bob’s retirement model planning model prepared by idriss achour1

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Bob’s retirement model planning model prepared by idriss achour1

  1. 1. BOB’S RETIREMENT MODEL PLANNING MODEL PREPARED BY: IDRISS ACHOUR PRESENTED BY NIKKI DUFOUR Retirement plan analysis Feb/15/ 2014
  2. 2. Assumptions Data fixed variable controlled Bob's Current Age 50 R Retirement age 65 R Savings Rate 3% R Postretirement Income (% of his final salary) 60% R Rate of return on Investments /year up to retirement = 8% R Rate of return on Investments /year after retirement = 5% R Age at death 80 R Age when wife dies 80 R Bob's Current Retirement Fund $ 150,000 R College % Invested 10% R Current Salary $ 100,000 R Bob Average Annual Contribution $ 7,500 R Age runing out of money $ 81
  3. 3. Data used  Controllable data  current and retirement age  Annual Salary and increases  Rates of return on investement  Employer and personal contributions
  4. 4. Graphical presentation 50 60 70 80 90 100 110 AgeBobrunsoutof$ % Age of post retirment income Age Bob runs out of $ Postretirment income %
  5. 5. Graphical presentation 0 20 40 60 80 100 120 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 Bobrunsoutofthe$ Retirement Age Age Bob runs out of $ Retirement age
  6. 6. Graphical presentation 50 55 60 65 70 75 80 Bobrunsoutof$ Bob's annual contribution Age Bob runs out of $ Bob's annual contribution
  7. 7. Sensitivity parameter 56.00 61.00 66.00 71.00 76.00 81.00 86.00 91.00 96.00 101.00 Retirement age Postretirement Income (% of his final salary) Current Salary Rate of return on Investments /year up to retirement = Bob's Current Retirement Fund College % Invested Bob Average Annual Contribution Bob's Current Age Savings Rate Rate of return on Investments /year after retirement = Age at death Age when wife dies Output Measure Parameter Tornado Sensitivity Chart -20 Pct +20 Pct
  8. 8. Recoomendations  Suggested age of retirement – 65  Personal contribution increased  Modest post- retirement income

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