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BOB’S RETIREMENT
MODEL PLANNING
MODEL PREPARED BY:
IDRISS ACHOUR
PRESENTED BY
NIKKI DUFOUR
Retirement plan analysis
Feb/15/ 2014
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
Data used
 Controllable data
 current and retirement age
 Annual Salary and increases
 Rates of return on investement
 Employer and personal contributions
Graphical presentation
50
60
70
80
90
100
110
AgeBobrunsoutof$
% Age of post retirment income
Age Bob runs out of $ Postretirment income %
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
Graphical presentation
50
55
60
65
70
75
80
Bobrunsoutof$
Bob's annual contribution
Age Bob runs out of $ Bob's annual contribution
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
Recoomendations
 Suggested age of retirement – 65
 Personal contribution increased
 Modest post- retirement income

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Bob’s retirement model planning model prepared by idriss achour1

  • 1. BOB’S RETIREMENT MODEL PLANNING MODEL PREPARED BY: IDRISS ACHOUR PRESENTED BY NIKKI DUFOUR Retirement plan analysis Feb/15/ 2014
  • 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. Data used  Controllable data  current and retirement age  Annual Salary and increases  Rates of return on investement  Employer and personal contributions
  • 4. Graphical presentation 50 60 70 80 90 100 110 AgeBobrunsoutof$ % Age of post retirment income Age Bob runs out of $ Postretirment income %
  • 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. Graphical presentation 50 55 60 65 70 75 80 Bobrunsoutof$ Bob's annual contribution Age Bob runs out of $ Bob's annual contribution
  • 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. Recoomendations  Suggested age of retirement – 65  Personal contribution increased  Modest post- retirement income