For the 4th part of this retirement plan, you will utilize the FV of the Life Styles you calculated in the previous step to understand how much money an individual will need to have saved to get through the retirement stage.
For the 2nd part of this plan, we need an understanding of how much money an individual would need in the future for retirement. For this step, assume an individual needed the following amounts to retire, how much would he or she have to invest today?
After calculating the 5-Year Return on the S&P 500 Index (RATE), determine how long it will take for an investment to double using the Rule of 72. Now that you have an understanding of the return in the market, you need to think about planning for future
You are now ready to interpret the ratios that you have calculated. If a ratio increased from 2012 to 2013, why do you think that it increased? Is it a good or bad sign that the ratio increased? Please explain.