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    Retirement planning: Capital depletion model

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    Please help arrive at the capital depletion model for a couple.

    If a married couple is each 43.
    Husband makes 75000
    Wife makes 50000
    Required Rate of REturn is 8%
    Inflation rate is 3%

    If they retire at 62 what is the total needed assuming 80% wage replacement ratio to age 96? My calculations are below. Are they correct?
    PV - 100,000 (80% of 125,000)
    N-19
    i - 3
    FV 175,350

    Find Lump sum that they need to have to get to age 96 (beg mode)
    PMT - 175,350
    N 34 (96-62)
    i [(1.08/1.03)-1]x100
    PVAD 3,390,948

    How much do they need to save? Below is portfolio

    STock Portfolio = 200,000
    401K = 250,000 (adding 7,500 annually)
    IRA = 28,000

    PV = 478,000
    i = 8
    n = 19
    FV 2,062,905

    Needed 3,390,948
    FV of Lump 2,062,905
    Difference is 1,328,043

    What is additional that needs to be saved?
    FV = 1,328,043
    n=228 (19x12)
    i.0067 (8% / 12)
    PMT 5,780

    Are these numbers correct?
    What do we do to figure Social Security changing how much is needed to save....Head of House - 29,996; Spouse - 22,468, beginning at age 62, 65, 67?
    At age 62 they will have reduced benefits of 75.8% of SS
    At age 65 they will have 94.4%
    At age 67 they will have 100%.

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    https://brainmass.com/economics/the-time-value-of-money/retirement-planning-capital-depletion-model-600862

    Solution Summary

    The solution provides a capital depletion model for retirement planning for a married couple.

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