You will design an Excel workbook that provides your personal retirement plan. The design of the...

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You will design an Excel workbook that provides your personal retirement plan. The design of the workbook is up to you, but it should be detailed enough and documented enough that I can understand your assumptions and inputs when you turn it in. You should use publicly available resources for your estimates of salary, salary growth, and living expenses. Please include a hyperlink in the spreadsheet that acts as a citation to the data you used.

Instructions for Term Project FINC 3400 Business Finance Winter 2020 You will design an Excel workbook that provides your personal retirement plan. The design of the workbook is up to you, but it should be detailed enough and documented enough that I can understand your assumptions and inputs when you turn it in. You should use publicly available resources for your estimates of salary, salary growth, and living expenses. Please include a hyperlink in the spreadsheet that acts as a citation to the data you used. Your time horizon starts when you graduate from SU. You must choose a job, location, and salary based on your desires and opportunities. You will need to forecast salary, retirement benefits from your employers, annual expenses, and for those who qualify expected social security payments. If you don’t plan to work in the US, please research and include any information on government sponsored retirement plans where you intend to work. Your savings toward retirement can’t be greater than the difference between your take home pay (net of taxes) and your annual expenses. You should forecast and include major life events including potential capital purchases (cars, houses), and if applicable, saving toward things other than retirement (down payments, childcare expenses, future tuition, and the like). You will forecast your retirement date. You will also forecast your available spending annually after retirement and include a bequest if you plan to do so. The goal of the project is to have a dynamic workbook that forecasts your potential annual expenditures after retirement. Assume an 8% rate of return on your savings until retirement, and 4% return after retirement. You are not allowed to use a retirement plan template. You must build your own Excel workbook. It should be easy to interpret and easy to modify.

instructions-for-term-project-winter-2020-bwfhs4sm.docx

Monali · Accepted Answer

Forecast
														House Purchase Expense Estimate
			Tax rate = 24%	Expenses per Annum increased at rate of inflation of 2% every year					Rental 12,000/Annum till 29 years	Rate 6.2% of Net Income	Rate of 6.2% of Net Income	Net Income - Living Expenses - Rental -SS Contribution	Investment return rate 6%	Payment for House		Net Income - Living Expenses - Housing loan -SS Contribution	Investment return rate 6%	Inflation rate 3%
	Age	Salary / Annnum	Net Income	Food Expense	Trasportation	Helath Insurance	Personal Care Service	Other	Rental Expense	Employee Contribution to Social Security	Employee contribution of Social Security	Surplust Net Income	Surplus Net income invested	House value	$479,999			Inflation Adj Income	Top 35 Inflation Adju Salary 
	21	$88,000	$66,880	$4,464	$6,000	$3,405	$9,216	$12,000	$12,000	$4,147	$4,147	$15,648	$939	LumpSum	$60,611			$64,874	$106,894	Average Monthly Income (AIMI)	$8,408
	22	$88,000	$66,880	$4,553	$6,120	$3,473	$9,400	$12,240	$12,000	$4,147	$4,147	$14,947	$897	Amount of Loan	$419,388			$64,874	$106,894	Primary Insurance Amount (PMI)	$1,261
	23	$88,000	$66,880	$4,644	$6,242	$3,543	$9,588	$12,485	$12,000	$4,147	$4,147	$14,231	$854	Loan rate	4.30%			$64,874	$106,894	Claim limit	$5,045
	24	$88,000	$66,880	$4,737	$6,367	$3,613	$9,780	$12,734	$12,000	$4,147	$4,147	$13,501	$810	Loan interest	$18,034			$64,874	$106,894	Total Contributed Fund	$433,450
	25	$88,000	$66,880	$4,832	$6,495	$3,686	$9,976	$12,989	$12,000	$4,147	$4,147	$12,756	$765	Loan / Annum 	$14,581			$64,874	$106,894	Interest rate on Fund 	3%
	26	$88,000	$66,880	$4,929	$6,624	$3,759	$10,175	$13,249	$12,000	$4,147	$4,147	$11,997	$720					$64,874	$106,894	Interest earned on fund / Year	$13,003
	27	$88,000	$66,880	$5,027	$6,757	$3,835	$10,379	$13,514	$12,000	$4,147	$4,147	$11,222	$673	Starting income at Age 30 year				$64,874	$106,894
	28	$88,000	$66,880	$5,128	$6,892	$3,911	$10,586	$13,784	$12,000	$4,147	$4,147	$10,432	$626	Surplus Balace	$57,180			$64,874	$106,

Instructions for Term Project FINC 3400 Business Finance Winter 2020 You will design an Excel workbook that provides your personal retirement plan. The design of the workbook is up to you, but it...

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