Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Bob's Retirement (Fahad ahsan9501277)

400 views

Published on

Bob's Retirement plan Presentation

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

Bob's Retirement (Fahad ahsan9501277)

  1. 1. Bob’s Retirement Plan Prepared by: Fahad Ahsan Presented by: Erica Robertson TRU Financials
  2. 2. Assumptions and Data Value of Retirement Fund Earning Growth Rate% % College Invests Bob’s Investments Bob’s Salary Age At Retirement • Number of Persons • Simple Interest • Tax and Inflation • Yearly interest • Withdrawals
  3. 3. The Model Data Base case Worst case Variable Age Retirement age 67 65 65-77 Income Growth Rate 5% 0 0 Postretirement Income (% of his final salary) 60% 60% 60% Rate of return on Investments /year up to retirement = 8% 3% 3% Rate of return on Investments /year after retirement = 5% 3% 2.5% Bob's Current Retirement Fund $150,000 $150,000 $150,000 College % Invested 10% 10% 10% Current Salary $100,000 $100,000 $100,000 Bob's Annual Contribution $9,500 $9,500 $9,500
  4. 4. Model Results 50 60 70 80 90 100 110 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% AgeBobrunsoutof$ %'age of Post Retirement Income Age Bob runs out of $ - %'age of Post Retirement Income 50 55 60 65 70 75 80 85 500 1,500 2,500 3,500 4,500 5,500 6,500 7,500 8,500 9,500 10,500 11,500 12,500 13,500 14,500 AgeBobrunsoutof$ Amount of Bob's Annual contribution Age Bob runs out of $- Amount of Bob's Annual contribution 50 55 60 65 70 75 80 85 90 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 AgeBobrunsoutof$ Retirement Age Age Bob runs out of $ - Retirement Age
  5. 5. Sensitivity 83.00 85.00 87.00 89.00 91.00 93.00 95.00 97.00 99.00 101.00 Rate of return on Investments /year up to retirement = Postretirement Income (% of his final salary) Savings Rate College % Invested Bob's Annual Contribution Retirement age Rate of return on Investments /year after retirement = Age at death Age when wife dies Age at Which Bob Runs out of $ Parameter Tornado Sensitivity Chart -10 Pct +10 Pct
  6. 6. Summary And Recommendations • Put off retirement as long as possible • Better Interest rates • Tweak percentage of income needed after retirement Thank You

×