Financial analysts recommend investing 15% to 20% of your annual income in your retirement fund to...

Financial analysts recommend investing 15% to 20% of your annual income in your retirement fund to reach a replacement rate of 70% of your income by age 65. This recommendation increases to almost 30% if you start investing at 45 years old. Mallori Rouse is 28 years old and has started investing $5,100 at the end of each year in her retirement account. How much will her account be worth in 20 years at 10% interest compounded annually? How much will it be worth in 30 years? What about at 40 years? How much will it be worth in 50 years? (Please use the following provided Table 13.1.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

Expert Solution

jeff jeffy answered 7 months ago

You are investing for your retirement and your financial advisor has strongly recommended the mutual fund,...

You are investing for your retirement and your financial advisor has strongly recommended the mutual fund, Fidelity Select Retailing Portfolio, FSRPX. She suggested this fund can meet your needs since it has been around since December 1985 and has performed quite well. Being the aggressive investor that you are, you want to invest in a fund that has a high annual return rate. The annual returns (in percents, from oldest to newest) are as follows: 14.18, -7.36, 38.71, 29.53, -5.03,...

Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The...

Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.95. Now, suppose you sell one of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 2.05. Calculate your portfolio's new beta. Do not round intermediate calculations. Round your answer to two decimal places.

You wish to retire in 20 years. Currently, your pre-retirement fund has RM50,000 in a savings...

You wish to retire in 20 years. Currently, your pre-retirement fund has RM50,000 in a savings account yielding 3.0% annually and RM300,000 quality stocks yielding 11.0% annually. Furthermore, you expect to add RM8,000 to the savings account and RM15,000 to your stock portfolios at the end of each year in the next 20 year. You will keep this fund until the retirement date. Calculate the overall rate of return per year that you must earn on your post-retirement fund if...

Rachael deposits $3,600 into a retirement fund each year. The fund earns 7.5% annual interest....

Rachael deposits $3,600 into a retirement fund each year. The fund earns 7.5% annual interest, compounded monthly. If she opened her account when she was 20 years old, how much will she have by the time she’s 55? How much of that amount was interest earned?

Your retirement is 20 years away and you are interested in saving for your retirement. You...

Your retirement is 20 years away and you are interested in saving for your retirement. You expect another fifteen years to live after retirement. You think you will need 60,000 dollars every year to live post retirement. You have to estimate how much you should save annually if You expect a rate of return of 8% for the next 35 years, and You expect to earn 9% for the next 20 years. At retirement you put your money in an...

An engineer will deposit 15% of her salary each year into a retirement fund. If her...

An engineer will deposit 15% of her salary each year into a retirement fund. If her current annual salary is $80,000 and she expects that it will increase by 5% each year, what will be the present worth of the fund after 35 years if it earns 5% per year? a. $1.3 million b. $3.4 million c. $2.2 million d. $4.5 million

selecting a retirement portfolio. create your own retirement portfolio consisting of a stock fund and a...

selecting a retirement portfolio. create your own retirement portfolio consisting of a stock fund and a bond fund. The one‐page paper (single‐space text, font 12) will discuss the criteria (return, risk, and fees) in selecting the two funds and present an analysis of past performance of the two funds.

You are planning your retirement in 15 years. You plan to retire with $3,000,000 and your retirement...

You are planning your retirement in 15 years. You plan to retire with $3,000,000 and your retirement account earns 4.8% compounded monthly. After you retire, you plan on withdrawing $15,000 per month from your account until you have nothing left. How many years can you live off your retirement account after you retire?

Suppose you work as an Equity Research Analyst for the Teachers’ Retirement Pension Fund. Your fund...

Suppose you work as an Equity Research Analyst for the Teachers’ Retirement Pension Fund. Your fund is offered to purchase TechRevolution public offering at $3.30 per share. While your fund’s manager is very interested in this stock, he also wants to make sure the fund pays a fair price per share, so he asked you to determine the fundamental price of the firm’s stock. Using various sources, you gathered the following information about TechRevolution Year Free cash flow (FCF forecast),...

Financial media often invites fund managers or analysts to predict future stock returns and will only...

Financial media often invites fund managers or analysts to predict future stock returns and will only invite them back if their predictions produce positive outcomes. This type of behavior by the media could lead to which of the following bias? 1-Availability heuristic/bias 2-Gambler’s fallacy 3-Hot hand fallacy You purchased 200 shares of GPRO when it went IPO. The stock doubled in price within 3 months. You sold 100 shares, thus recovered your cost, and decided to keep the other 100...

Question