Eric's Retirement Plan
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Your brother, Eric, has asked your advice on creating a retirement plan. He is 35 years old, earns US$55,000 per year with average raises of 4% per year, and plans to work until the age of 65. His company offers a 401(k) plan with matching contributions of up to 8% of his income that has been earning an average of 10% per year.
Your brother is very active and loves to travel. After retirement, he plans to travel the world and be very active. He is unsure how to plan for retirement, does not understand the different retirement investment options, and needs your help.
Develop a spreadsheet that shows how much Eric can expect to have in his retirement account when he turns 65 if he begins depositing 8% of his salary now.
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Solution Summary
Detailed excel spreadsheet for retirement plan. All formula's can be found in the cells.
Solution Preview
Eric is probably paid more than once a year, but since we don't have that information I used his annual salary. You can click on any of the cells for the ...
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