Quiz 10 Due June 17, 2021
1.Might it actually affect your spending habits now to think about how $1 at age 25, if invested, could easily be $32 at age 70? Explain whether it might.
2. Explain the logic of your retirement age goal.
3.Picturing yourself during retirement, do you predict having grandchildren?
4. If taking a leisurely walk every day, starting now, would add 5 healthy years to your senior years, would you be able to start that walking habit?
5. Of Jaspreet’s four investment styles he reviews, which would be Dr. Stewart’s favorite, and which is Jaspreet’s favorite?
6. If you want to spend $50,000 per year for each of your retired 25 years, and your account will average 7.125% annual returns, then how large a nest egg do you need to achieve that goal?
7. Social Security income changes by approx. 8% per year, lower if you’re not FRA, higher if you are, from 62 to 70. If your annual Social Security income would be $18,000 at age 67, what would it be at age 62? 70?
8. Suppose you make $50,000 and are taxed 25% on it before you invest the total after-tax amount. In year 1 that amount grows by 8%, and then that growth amount is taxed 25%. Same for years 2, 3 and 4. How much did you invest at the beginning, and what are the after-tax account balances at the end of 1, 2, 3 and 4?
