Case Study
Case studies should be formatted according to APA guidelines for an executive summary.
Lets assume that you would like to establish a retirement plan. Develop a spreadsheet model that could be used to assist you with retirement planning. Your model should include the following input parameters:
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- Your age in years (age is 25)
- Current total retirement savings
- Annual rate of return on retirement savings between 5% – 10%
- Current annual salary
- Expected annual percentage increase in salary 1%- 5%
- Annual salary contributed to retirement 4- 6%
- Age of retirement between 55 70 years old
- Annual expenses after retirement (current dollars) $50,000 – $140,000
- Rate of return on retirement savings after retirement 1% – 13%
- Income tax rate postretirement 10 – 35%
- Assume Inflation rate is 3- 6%
Assume that your employer contributes up to 6% of your salary towards your retirement fund. Also you can make an additional annual contribution to your retirement fund before taxes (tax free) up to a contribution of more than $10,000 but less than $15,000. Assume that you contribute between $3,000 -$10,000 per year. Also, assume an inflation rate of 3-6%. The specific numbers should be displayed and explained in your paper.
Directions
Respond in detail to each question. Prepare a managerial report as described below.
Your spreadsheet model should provide the accumulated savings at the onset of retirement as well as the age at which funds will be depleted (given assumptions on the input parameters).
As a feature of your spreadsheet model, build a data table to demonstrate the sensitivity of the age at which funds will be depleted to the retirement age and additional pre-tax contributions. Similarly, consider other factors you think might be important.
Report should include an outline of the factors that will have the greatest impact on his retirement and a summary of recommendations.
Minimum of 2 full pages ( I’ve added 3 pages for the conpensation on the excel portion)