Personal Finance - Chapter 14

the concept "pay yourself first". With this in mind, what is your advice to someone on paying off credit card debt and investing for their retirement? Do you feel as though they should pay off all credit card debt before investing for their retirement or is it best to start investing for retirement as soon as possible? Why? * 350 word minimum

STRATEGY 2: SAVINGS LATER PLAN Assume that you are 22 years old but decide to wait before saving for retirement. You decide to start saving later when you are 42 years old. As a result, you start saving on January 1, 2042. You plan to retire on December 31, 2064, when you are 64 years old. There are 23 years from the time you started investing (saving) until you retire. When you start investing in 2042, you have no previous or other retirement savings. Assume there are 365 days in each year from 2022 to 2064. (Ignore leap years). Assume that taxes will not affect any of the amounts or your savings.   You invest $350 at the end of each month into a retirement account paying 8.75% compounded monthly for 15 years starting on January 1, 2042. After 15 years, you do not make any more payments or withdrawals and leave the money in the retirement account until retirement. Show all work and answer the following questions:   Assuming no withdrawals or additional payments were made, how much…

Explain to a friend or relative how you would use the TVM concept to achieve their desired retirement amount. How much would they need to retire? How would you develop a savings plan using that number? Use Excel to calculate and explain the numbers when posting to the forum. Include the interest rate and investment. Starting amount is 45,000 at age 30 with the retirement age of 67

STRATEGY 2: SAVINGS EARLY PLAN Assume that you are 22 years old and are started saving for retirement on January 1, 2022. You plan to retire on December 31, 2064, when you are 64 years old. There are 43 years from the time you started investing (saving) until you retire. You have no previous or other retirement savings when you start to save. Assume there are 365 days in each year from 2022 to 2064. (Ignore leap years). Assume that taxes will not affect any of the amounts or your savings.   You invest $350 at the end of each month into a retirement account paying 8.75% compounded monthly for 15 years starting on January 1, 2022. After 15 years, you do not make any more payments or withdrawals and leave the money in the retirement account until retirement. Show all work and answer the following questions:   Assuming no withdrawals or additional payments were made, how much money will be in your retirement account after 15 years? After 15 years, how many years are left until you retire?…

What is the difference between an ordinary annuity and an annuity due? If you were to save money in an annuity, which would you chose and why. Create a retirement plan budget. What will you need to budget if you are retiring. Provide an excel or word table showing your budget.

if you were to picture yourself 10 years from now in a profession of your own choice how would you study personal finance help you contribute more to your field of expertiseif you were to picture yourself 10 years from now in a profession of your own choice how would you study personal finance help you contribute more to your field of expertise

39 STRATEGY 2: SAVING LATER PLAN Assume that you are 23 years old but decide to wait before saving for retirement. You decide to start saving later when you are 42 years old. As a result, you start saving on January 1, 2042. You plan to retire on December 31, 2067, when you are 68 years old. There are 26 years from the time you started investing (saving) until you retire. When you start investing in 2042, you have no previous or other retirement savings. Assume there are 365 days and 52 weeks in each year from 2042 to 2067. (Ignore leap years). Assume that taxes will not affect any of the amounts or your savings. You invest $125 at the end of each week into a retirement account paying 7.5% compounded weekly for 12 years starting on January 1, 2042. After 12 years, you do not make any more payments or withdrawals and leave the money in the retirement account until retirement. Show all work and answer the following questions: 1. Assuming no withdrawals or additional payments were made,…

error_outlineHomework solutions you need when you need them. Subscribe now.arrow_forward   Question Asked Mar 12, 2020 187 views Basic Present Value Concepts Julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $150,000 immediately as her full retirement benefit. Under the second option, she would receive $14,000 each year for 20 years plus a lump-sum payment of $60,000 at the end of the 20-year period. Required: If she can invest money at 12%, which option would you recommend that she accept? Use present value analysis.

10:21 Exploring Annuities [DIR... • Sheet 3- Time Comparison 1. At the bottom of the page, click on Sheet 3. If you're using Google Sheets, you can add a 3rd sheet. Rename it "Time Comparison". On this sheet, we're going to look at two individuals that are paying into annuities for their retirement fund. We want to attention to when eac. these paying into their annuity. 2. Type "Age - stats of saving" in cell A2. 3. Type "Payment Amount (P)" in cell A3. 4. Type "Rate (i)" in cell A4. 5. Type "Number of Payments per year (n)" in cell A5. 6. Type "Years to retire at 65 (t)" in cell A6. Again, find some reasonable values for payment amount, interest rate, and number of payments. 7. In cell B1, type "Tommy". Then enter his age, "45", in cell B2. 8. In cell C1, type "Sammy". Then enter his age, "25", in cell C2. a. NOTE: Pick whichever names you'd like. 9. Enter the amounts you chose for payment, rate, and frequency in cells B3 thru B5. These amounts should be the same for C3 thru CS. 10.…

If you are an investor, you will put a sum amount in a bank account and will keep on adding that amount into that account until you want. Once you get to retire from your job you can start getting that amount in the form of constant or variable payouts. This amount considered as:   A.   Annuity   B.   Retirement planning   C.   Accumulate interest

Case A - You have decided to start planning for your retirement. You already have $11,000 in your investment account. You plan to put an additional $4,000 into the account at the BEGINNING of each year for the next 10 years and then put $6,000 into the account at the BEGINNING of each of the following 30 years. Your account is expected to grow at 6.5% interest (tax free) annually. Prepare a schedule to show (1.) the year (1 through 40), (2.) the beginning balance each year, (3.) the amount of interest earned each year, (4.) the deposit each year, and (5.) the ending balance each year. Format each of the dollar amounts with two decimals. Please include totals at the bottom of your spreadsheet for (1) the amount of interest and (2) the amount of deposits during the entire 40 year (10 + 30) year time. Case B - You estimate that you will have $43,000 of school loans by the time you graduate. Your school loan is to be paid off over 10 years but you plan to pay it off over a 4 year period…

Question 13 You have a 401(k) plan, which is used for retirement savings, at work. If you plan to invest $5,000 at the end of every year for 35 years until you retire, which formula would you use to determine how much you will have when you retire? O future value of an annuity due O present value of a lump-sum future value of an ordinary annuity present value of an ordinary annuity future value of a lump-sum Question 14 You deposit $3,250 into a savings account at a local bank. It will pay you 1.25% compounded monthly for 2 years. To determine how much you will have at the end of that time, which formula would you use? future value of an annuity due O future value of a lump sum O present value of a lump-sum future value of an ordinary annuity

QUESTION 9 Create a spreadsheet for the scenario described below and submit it as your answer to this question. You will then use the spreadsheet you created to answer questions #10-12. Right now, Raelynn has $28,575 in her IRA (retirement account). She plans to make deposits to this account of $2,000 per year for the next 10 years, and then $3,500 per year for the fifteen years after that, and beyond that no further payments, Create a spreadsheet to find the future value of her IRA 40 years from now, assuming she earns 8.25%. Attach File Browse Local Files Browse Content Collection

Excel Online Activity: Required annuity payments 1 Question 1 0/10 Submit HVideo Excel Online Structured Activity: Required annuity payments Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $60,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 4%. He currently has $70,000 saved, and he expects to earn 9% annually on his savings. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Qoen spreadsheet How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? Do…

46-50 When you are planning to buy a house or property mostly you will take mortgage loans. But you may think first of the finance charge or interest that will cost you to own it and you will commit to making monthly payments. Do you think that mortgage loans will be helpful or it can be a burden because of your commitment to pay the monthly payments? Why?

Question 2You plan to retire 33 years from now. You expect that you will live 27 years after retiring. You want to have enough money upon reaching retirement age to withdraw $180,000 from the account at the beginning of each year you expect to live, and yet still have $2,500,000 left in the account at the time of your expected death (60 years from now). You plan to accumulate the retirement fund by making equal annual deposits at the end of each year for the next 33 years. You expect that you will be able to earn 12% per year on your deposits. However, you only expect to earn 6% per year on your investment after you retire since you will choose to place the money in less risky investments.Required:Calculate the equal annual deposits you must make each year to reach your retirement goal.

Subject :- Accounting    You have discussed your retirement plans with your significant other and plan to move to a state with a lower cost of living upon retirement. You plan on living off $85,000 annually. You understand that your retirement account will likely yield a 5% return. Using the 4% Rule, how much money do you need in your retirement account upon retirement?(round to the nearest dollar){DO NOT INCLUDE COMMAS OR $}

Standard Insurance is developing a long - life insurance policy for people who outlive their retirement nest egg. The policy will pay out $240 comma 000240,000 on your 82 nd82nd birthday. You must buy the policy on your 65 th65th birthday. The insurance company can earn 55% on the purchase price of your policy. What is the minimum purchase price the insurance company should charge for this policy? Question content area bottom Part 1 What is the minimum purchase price the insurance company should charge for this policy?

What are the 5 Best Strategies for Retirement Savings in 2024? and how could one go about this. In the US

Part 1: Data Tables You have decided to start saving for retirement. You plan to work for 35 years and then retire. Requirements: Complete each requirement on a separate worksheet. 1. Calculate the amount of money that will be in your Roth IRA account when you retire if you: a. Save $3,500 at the end of each year. b. Earn 7% interest each year. c. The answer to requirement I must be calculated using a single formula. 2. Create a one-input Data Table that calculates the value of your Roth IRA when you retire if the annual savings amount is different than $3,500 per year. a. Use the following annual end of the year annual savings amounts as the column data in the Data Table: $500, $1,000, $2,000, $3,000, $3,500, $4,000, and $5,000. b. The annual interest rate is still 7% each year. 3. Create a two-input Data Table that calculates the value of your Roth IRA when you retire for different annual interest rates and different annual savings amounts. a. Use the following annual interest rates…

A Question 11 You deposit $5000 each year into your retirement account, starting in one year. If these funds earn an average of 5% per year over the 27 years until your retirement, what will be the value of your retirement account upon retirement? Your Answer: Answer Hide hint for Question 11 NOTICE THAT THE ONLINE FINANCIAL CALCULATOR HAS THE BUTTON FOR PAYMENTS MADE AT THE END OF THE PERIOD. THIS IS THE DEFAULT OF THE CALCULATOR, AND THE WORDS 'STARTING IN ONE YEAR' ARE JUST CONFIRMATION THAT YOU WANT THAT END OF THE PERIOD BUTTON SELECTED.