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4.3 Unit Assignment: Retirement Planning. — Business

PLEASE COMPLETE ALL THE ASSESSMENT CRITERIA AT THE BOTTOM

Introduction

This assignment gives practice in simulation with two data points over time. You will be calculating potential portfolio returns over many years and need to incorporate uncertainty about wage growth and market performance into the model.

Instructions

To assist with this assignment, first read the following scenario:

You have been hired as a financial planner for your friend Grace. Her current annual salary is $60,000 and she has $100,000 in her portfolio currently. She would like to retire in 25 years with a nest egg of at least $2,000,000.

Grace can save 6% of her annual salary to her portfolio, and her portfolio invests solely in an index fund that tracks the S&P 500. She is hoping you can help her plan for retirement with a better understanding of her wage growth and portfolio returns.2

  • Based on this scenario:Submit both the report and the MS Excel file 

Assessment Criteria

Assessed ItemPoints
The report is written with business stakeholders as the intended audience and is of sufficient length to address the prompt.10
The population statistics were calculated correctly and an appropriate distribution was selected.20
Future wage growth and portfolio returns were calculated correctly.20
The report discusses the risks inherent with the simulations and provides sound advice for Grace’s savings goals and retirement date.30
Total Points80
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