Question

ITEM SET 1: CAPITAL NEEDS ANALYSIS Troy and Kristy Reynolds (both currently age 56) have determined that they will require re

  1. What is the amount of capital Troy and Kristy need to save by the start of retirement to support their income needs throughout retirement.?(Use Annuity Method)
  2. How much will Troy and Kristy need to save each year to fund their retirement goal? (Use Annuity Method)

  1. Assume, you discover that Troy and Kristy are unable to meet their retirement funding needs. What is the best alternative you would advise?

  1. Increase the risk in their portfolios, higher risk means higher returns and this will help them accumulate more for their retirement.
  2. Decrease the amount they are planning to live on in retirement
  3. Work longer before they retire
  4. Take out a loan from the bank and invest the money for retirement.
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Answer #1

-8 93000 Anuity ( (+64) 67. 93000 14976 56 pa 6.2097 They should have close to 15000 $ p. annum C they are planning AM2 They

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