Question

4. Heather and Marcos would like to receive $60,000 per year in retirement. Both age 70, they plan to retire in 40 years. They do not have anything saved currently. Assume for 20 years.
The portfolio options for them are:
Aggressive (80% stock/20% bonds) 10% annual return
Moderately Aggressive (60% stock/40% bonds) 8% annual return
Moderately Conservative (40% stock/60% bonds) 6% annual return
Conservative (20% stock/80% bonds) 3% annual return
Calculate how much they will need to save at retirement. _______________________
How much will they need to save each month to achieve their goal? ______________________
Briefly explain your plan for them, i.e., portfolio choice, timing, etc.