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Suggest how you can minimise the amount of cash you must invest in order to reach your retirement
goal.
Step by step
Solved in 2 steps
- Explain the concept of time value of money in the context of simple interest. How would you use this in retirement planning?a) Explain the time value of money principle.b) Identify the underlying assumption of the time value of money principle.c) Suggest how you can minimise the amount of cash you must invest in order to reach your retirement goal.How should one consider the time value of money when planning for retirement? Please share examples within your response.
- Adapting to a low-interest-rate environment. A retired couple has expressed concern about the really low interest rates theyre earning on their savings. Theyve been approached by an adviser who says he has a sure-fire way to get them higher returns. What would you tell this retired couple about a low-interest-rate environment, and how would you recommend them to view the advisers new prospective investments?Illustrate the Process of Calculating the savings required for retirement?If we realize that our retirement plan will not be able to provide the desired income during our retirement period, we should make some corrections. From the measures listed below, choose the one that WILL NOT help us to achieve our financial goals during our retirement period. * Reduce our required income in retirement. Increasing the contributions to our retirement portfolio during our working period (that is, before we retire). Stop making deposits in our Individual Retirement Account (IRA). Trying to increase the rate of return of the investments we do to our retirement portfolio before retirment. Delay our retirement to a later date.
- RetirementAccounts. Why are retirement accounts more beneficial than other investments that could be used for retirement? Describe an effective strategy for retirement planningNeed help how to get the final answer? using Deferred Annuity?Investing is a risky business, so investors must be ready to accept that future investment cash flows may be uncertain and unpredictable. This being case, what is the best way to evaluate the value of such an investment? A. Determine the future value of the individual anticipated cash flows at a minimum acceptable rate of return B. Convert the individual future cash flows in a perpetuity and determine the present value of the perpetuity C. Convert the individual future cash flows into an annuity and determine the present value of the annuity D. Determine the present value of the individual anticipated cash flows at a minimum acceptable rate of return
- Make a timeline and your plan of action on how you will invest or save money for your future in order to save yourself from financial hardships.What are good retirement goals? Discuss how someone could achieving these goals.What is the Time Value of Money (TVM)? Specifically, how do inflation and compound interest effect the value of the cash you have on hand or hope to accumulate?
