Financial Planning Assignment
Retirement Needs Analysis
You are 25 years old and currently earn $100,000 per year. Your wage replacement ratio (WRR) is determined to be 80%.
You expect inflation will average 4% for your entire life expectancy. You expect to earn 10% on your
investments and retire at age 62, living possibly to age 95. Her Social Security benefit statement
indicates your Social Security retirement benefit in today’s dollar adjusted for early retirement is $25,000
per year. You will make retirement savings contribution at the end of each month.
Use Excel to calculate Jane’s rerirement planning options under the (a) the Pure Annuity Model, (b) the Capital Preservation Model
and (c) the Purchasing Power Preservation Model
Review the Retirement Savings and Income Planning example in Course Documents (Click on the button)