retirement planning project by: the and sugar. meet nick peterson current age36 current after-tax...
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![Page 1: Retirement Planning Project By: The and Sugar. Meet Nick Peterson Current Age36 Current after-tax salary$ 120,000 Current investment portfolio $ 60,000](https://reader034.vdocuments.mx/reader034/viewer/2022051621/56649e915503460f94b96212/html5/thumbnails/1.jpg)
Retirement Planning Project
By: The and Sugar
![Page 2: Retirement Planning Project By: The and Sugar. Meet Nick Peterson Current Age36 Current after-tax salary$ 120,000 Current investment portfolio $ 60,000](https://reader034.vdocuments.mx/reader034/viewer/2022051621/56649e915503460f94b96212/html5/thumbnails/2.jpg)
Meet Nick Peterson
Current Age 36 Current after-tax salary $ 120,000 Current investment
portfolio$ 60,000
Current annual savings $ 12,000 Desired retirement age 66 Desired replacement
ratio80%
Projected Social Security Income
$ 2,470 monthly
Assumed inflation rate 3.0% Assumed investment
return7.0%
Targeted estate at death No stated goal Longevity Assumption Assume age 86
![Page 3: Retirement Planning Project By: The and Sugar. Meet Nick Peterson Current Age36 Current after-tax salary$ 120,000 Current investment portfolio $ 60,000](https://reader034.vdocuments.mx/reader034/viewer/2022051621/56649e915503460f94b96212/html5/thumbnails/3.jpg)
Current Scenario
Solutions to Deficit
Increase savings rate from 10% to 11% annually
Delay retirement to age 67 (1 extra year)
Surplus will be $8,646.73
![Page 4: Retirement Planning Project By: The and Sugar. Meet Nick Peterson Current Age36 Current after-tax salary$ 120,000 Current investment portfolio $ 60,000](https://reader034.vdocuments.mx/reader034/viewer/2022051621/56649e915503460f94b96212/html5/thumbnails/4.jpg)
Inflation Increase from 3% to 4%
Solutions to Deficit
Increase annual savings percentage to 12% from 10%.
Invest more aggressively in order to attain an 8% investment return rather than 7%.
![Page 5: Retirement Planning Project By: The and Sugar. Meet Nick Peterson Current Age36 Current after-tax salary$ 120,000 Current investment portfolio $ 60,000](https://reader034.vdocuments.mx/reader034/viewer/2022051621/56649e915503460f94b96212/html5/thumbnails/5.jpg)
Promotion: $150,000 from $120,000
Solution to Deficit:
Retire 1 year earlier
Reduce Replacement Ratio from 80% to 64%.
![Page 6: Retirement Planning Project By: The and Sugar. Meet Nick Peterson Current Age36 Current after-tax salary$ 120,000 Current investment portfolio $ 60,000](https://reader034.vdocuments.mx/reader034/viewer/2022051621/56649e915503460f94b96212/html5/thumbnails/6.jpg)
Gambling Problems:Withdrew $40,000 from Current Investments
Solution to Deficit:
Delay retirement from age 66 to age 69.
Decrease replacement ratio by 5% from 80% to 75%.
![Page 7: Retirement Planning Project By: The and Sugar. Meet Nick Peterson Current Age36 Current after-tax salary$ 120,000 Current investment portfolio $ 60,000](https://reader034.vdocuments.mx/reader034/viewer/2022051621/56649e915503460f94b96212/html5/thumbnails/7.jpg)
SSI Cut in Half
Solution to Deficit
Delay retirement age 2 years.
Increase annual savings 2%
Decrease Replacement ratio 5%.
![Page 8: Retirement Planning Project By: The and Sugar. Meet Nick Peterson Current Age36 Current after-tax salary$ 120,000 Current investment portfolio $ 60,000](https://reader034.vdocuments.mx/reader034/viewer/2022051621/56649e915503460f94b96212/html5/thumbnails/8.jpg)
Shock City:Inflation decrease 2%Life expectancy increaseEarly Retirement
Solution to Deficit:
Increase Annual Saving by 4%.